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Rising Intergenerational Income Persistence in China

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  • Fan, Yi

    (National University of Singapore)

  • Yi, Junjian

    (Peking University)

  • Zhang, Junsen

    (Zhejiang University)

Abstract

This paper documents an increasing intergenerational income persistence in China since economic reforms were introduced in 1979. The intergenerational income elasticity increases from 0.390 for the 1970-1980 birth cohort to 0.442 for the 1981-1988 birth cohort; this increase is more evident among urban and coastal residents than rural and inland residents. We also explore how changes in intergenerational income persistence is correlated with market reforms, economic development, and policy changes.

Suggested Citation

  • Fan, Yi & Yi, Junjian & Zhang, Junsen, 2019. "Rising Intergenerational Income Persistence in China," IZA Discussion Papers 12804, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12804
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    References listed on IDEAS

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    8. Shiqi Jiang & Lingli Qi & Xinyue Lin, 2022. "The Impacts of COVID-19 Shock on Intergenerational Income Mobility: Evidence from China," IJERPH, MDPI, vol. 19(18), pages 1-20, September.
    9. Holger Sieg & Chamna Yoon & Jipeng Zhang, 2020. "The Impact of Migration Controls on Urban Fiscal Policies and the Intergenerational Transmission of Human Capital in China," NBER Working Papers 27764, National Bureau of Economic Research, Inc.
    10. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    11. Jiantao Zhou & Eddie Chi-Man Hui & Huiwen Peng, 2022. "Chasing opportunity? Inequality of opportunity and educational self-selection of interprovincial migrants in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 281-309, October.
    12. Emran, M. Shahe & Jiang, Hanchen & Shilpi, Forhad, 2020. "Gender Bias and Intergenerational Educational Mobility: Theory and Evidence from China and India," GLO Discussion Paper Series 497, Global Labor Organization (GLO).
    13. Diego Battiston & Stephan Maurer & Andrei Potlogea & Jose V. Rodriguez Mora, 2023. "The Dynamics of the “Great Gatsby Curve”, and a look at the curve during the Great Gatsby Era," Working Paper Series of the Department of Economics, University of Konstanz 2023-02, Department of Economics, University of Konstanz.
    14. Duan, Yide & Zhang, Haotian & Wang, Wenfu & Ao, Xiaoyan, 2022. "The effects of China's higher education expansion on urban and rural intergenerational mobility," China Economic Review, Elsevier, vol. 73(C).
    15. Yan, Weibo & Gao, Sihan, 2024. "Family background and intergenerational mobility in a transition economy: Evidence from China," Journal of Asian Economics, Elsevier, vol. 92(C).
    16. Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah, 2024. "Air pollution and education investment," Energy Economics, Elsevier, vol. 132(C).
    17. Weibo Yan & Xiaolan Deng, 2022. "Intergenerational income mobility and transmission channels in a transition economy: Evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(1), pages 183-207, January.
    18. Holger Sieg & Chamna Yoon & Jipeng Zhang, 2023. "The Impact Of Local Fiscal And Migration Policies On Human Capital Accumulation And Inequality In China," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(1), pages 57-93, February.
    19. Zafar, Rafia, 2022. "Intergenerational Mobility in Income and Consumption: Evidence from Indonesia," SocArXiv uzcfs, Center for Open Science.
    20. Xiaohe Zhou & Mingda Cheng & Chunhui Ye, 2023. "The Impact of Household Migration on the Intergenerational Educational Mobility: Based on the Perspective of Adolescent Development," IJERPH, MDPI, vol. 20(6), pages 1-13, March.
    21. Li, Cheng & Wang, Le & Zhang, Junsen, 2024. "Politician’s childhood experience and government policies: Evidence from the Chinese Great Famine," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 76-92.
    22. Feng, Qundi & He, Qinying, 2022. "Does parental migration increase upward intergenerational mobility? Evidence from rural China," Economic Modelling, Elsevier, vol. 115(C).
    23. Zehua Jiang & Sanghamitra Bandyopadhyay, 2024. "Intergenerational Mobility and Inequality in China: Evidence from the Chinese Household Income Project," Hacienda Pública Española / Review of Public Economics, IEF, vol. 248(1), pages 73-90, March.
    24. Tang, Le & Sun, Shiyu & Yang, Weiguo, 2021. "Does government education expenditure boost intergenerational mobility? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 13-22.
    25. Huang, Xiao & Huang, Shoujun & Shui, Ailun, 2021. "Government spending and intergenerational income mobility: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 387-414.

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    More about this item

    Keywords

    economic transition; intergenerational income persistence; great gatsby curve;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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