| After more than 30 years rapid development in China,some people get rich first.The wealth gap in fact has been the sign of different identity and different class.Coincided with the generational shift,it also brought a lot of "rich second generation" and "poor second generation".The essence of the "second generation" phenomenon is the lack of intergenerational income mobility,which reflects the Matthew effect of the stronger the strong and the weak weaker.Low intergenerational income mobility may lead some negative emotions,such as "school useless" and "ineffective efforts",to low-income groups'offsprings.Then they will be slacking and giving up trying.At the same time,the high-income groups' offsprings will be lack of crisis consciousness and reduce effort.All of these will eventually bring the huge waste of human resources and then lead to the decline of economic efficiency.In addition,low intergenerational income mobility may also cause the conflict between high and low income groups,and then bring about social instability.Economic efficiency decline and social instability will take our country into the "middle income trap".Therefore,further study of intergenerational income mobility and seek the effective ways to keep high intergenerational income mobility have some practical significance.In the analysis framework of Becker and Tomes(1979),intergenerational income mobility measures the degree of one family influence on child welfare,which generally be expressed through intergenerational income elasticity.The greater the intergenerational income elasticity,the more dependent on the parent generation,which means the intergenerational income mobility,is low.On the other hand,the smaller the intergenerational income elasticity,the less dependent on the parent generation,which means the intergenerational income mobility,is high.At present,how is the overall situation of intergenerational income mobility in China?Can "Second generation"phenomenon represent the overall high intergenerational income elasticity?In addition,how can parent income pass to the offsprings?What kind of impact will parent income influence offsprings' income inequality?Toward these problems,this paper will research the relationship of parent and offsprings' income in rural China,mainly includes the following three aspects:Part 1:The goal of this section is to estimate the intergenerational income elasticity of rural residents in order to understand the influence of parent income toward the offsprings'income.The results show that:In the first part,we find that from 1989 to 2011,the intergenerational income elasticity of rural residents is generally high,which shows that intergenerational income mobility is low.Nevertheless,the offsprings of low-income residents still have a chance to get out of low-income groups;high-income residents'offsprings may be entirely possible to fall out of the high-income groups,if they totally denpendent on their parents.In the second part,through more than 20 years trend of intergenerational income elasticity,we find that intergenerational income elasticity keep falling after a peak in 1997,but in 2011,intergenerational income elasticity rebound.The reason may be with the development of economy,social hierarchy gradually formed,parent's influence on the offsprings' income started to increase.In the third part,we find that in rural China,the intergenerational income elasticity of men is slightly higher than women;the intergenerational income elasticity in high level of economic development of the eastern region is the highest and western region the lowest;the intergenerational income elasticity of middle-income groups is the highest and low-income groups the lowest;the intergenerational income elasticity of 70s' offsprings is the highest and 80s'offsprings the lowest.Part 2:The goal of this section is to explore the intergenerational income transfer mechanism based on the perspective of economic factors,in order to understand what channels can father generation influence their offsprings' income.The results show that:In the first part,we find that offsprings' education is indeed important factor which can explain intergenerational income mobility in the countryside,its contribution rate between 8.13%and 13.36%.However,offsprings' profession type plays a more important role in the intergenerational income transfer process,its contribution rate between 16.1%and 22.02%.In the second part,we find that different groups in rural China have different intergenerational income transfer mechanism:the contribution rate of male offsprings'income affected by parent's income through education is far lower than the female;parent's income affect offsprings in mid-eastern area is higher,but in mid-western area the contribution of offsprings' profession is higher;parent in high income groups affects their offsprings' income mostly through education,but parent in low income groups affects their offsprings' income unlikely through profession;relative to the generation after 1960,the contribution rate of 70's and 80's offsprings' income affected by parent's income through education is rising,but the dgree of intergenerational income transfer through the offsprings' profession is not much change.Part3:The goal of this section is to investigate the rural residents' income inequality,and to explore how parent's income affects offsprings' income inequality.In the first part,we find that either parents or offsprings in rural China,their income inequality is high,and parents' income inequality is overall higher than offsprings'.In the second part,from the perspective of time series,we find that during 1989 to 2011,the average contribution through offsprings' education is 0.96%and through offsprings' profession is 4.42%.The contribution through offsprings' education and profession has no difference between eastern and middle regions.However,the contribution is lower in the western region,only 13.8%of the total contribution rate of offsprings' income inequality affected by parent's income.In the third part,from the perspective of different generations,we find that on the one hand,the 60's and 70's offsprings have a similar situation.When they are young,their parents affect their income inequality mainly through their education,and as the rise of the age,the contribution through offsprings' profession has relatively increased.On the other hand,for the generation after 1980,the contribution through offsprings' profession is higher than the contribution rate of education at their young age.In 26 to 30 ages,the gap of the contribution rate of offsprings' profession and education has further expanded.Based on the above conclusions,we consider that firstly,the government needs to further improve and perfect the labor market,make efforts to reduce the degree of labor market segmentation and unreasonable income gap between the professions.Then,the government also needs to constantly improve the transparency of information;make efforts to break the double track of the employment market,in order to reduce the situation of offsprings depend on their parents' social capital when they are searching jobs.Second,the government should make efforts to ensure that all the children have a fair chance to receive education.For this reason,the government should further increase the supply of high quality education resources,especially the economic underdeveloped backward area,in order to reduce the cost of private investment on education.On the other hand,the government also needs to set up a relatively complete education financing platform,which can eliminate the credit constraints of low income group when they want to invest on their offsprings' education.Third,as only effective labor market can provide a reasonable return on education,the improvement of the education system needs to be combined with the improvement of the labor market.If there is no relationship between income level and the level of personal education,the low income groups firstly will lack incentives of investment on offsprings' education,secondly even inveseted,the low income groups will become poverty becasuse of the investment on education.In this case,it will lead to the poor poorer. |
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