Social Capital And Income Mobility Of Urban Residents

Reform and opening up to the Chinese economy has brought rapid growth also expanded China’s income distribution gap problem, China is one of the most equal countries in resident income before reform and opening up, however gini coefficient has been more than 0.46 nearly ten years, far more than the international warning line of 0.4, income inequality has become one of the most prominent problem in today’s society. However just rely on gini coefficient of income inequality seems to be not enough comprehensive, if considering the income mobility, long-term income inequality may not look so big. Through income mobility perspective to study the income gap, the original static way into dynamic analysis method, can deepen our understanding of income gap. As a special form of capital, social capital in an important role in social economy, an important connection with personal income upward mobility.This paper is on the basis of related domestic and foreign research results, through the use of 2010 and 2012 CFPS(Chinese family tracking) town individual and family data, the empirical analysis of the relationship between social capital and income flow. This article uses Ologit model,and finds that social capital can promote urban residents income mobility upword. Considering the omitted variables caused by endogenous, this article selects the community other residents average social capital ownership as instrumental variables, overcome the endogeneity problem, the result is still a positive significant. In addition to social capital factors, family male labor quantity and its variation, population bring-up ratio, level of education, householder age, head of the household head of the household of party membership to urban residents income have positive significant upward mobility; Home position on the issue of class, family size and its variation impact on urban residents income upward mobility is a negative significant. In addition, this paper also found that social capital is helpful for urban families out of poverty and reduce the possibility of Chinese urban families.Finally, we according to the research conclusion of this paper puts forward relevant policy Suggestions, to promote the positive role of social capital, reduce the adverse effect of social capital.