The Income Gap Of Intergenerational Transmission And Its Changes Among Different Income Groups In Rural Areas

After the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party had determined the Strategic Conception of keeping economic development as the central task,"Chinese economy has entered a fast track of development, has made remarkable achievements, but "the lack of coordination of economic and social development", "lack of social fairness and justice", etc. issues are also increasingly prominent, is the direct consequence of the income gap continues to widen. According to the National Bureau of Statistics, in 2015 China’s Gini coefficient of 0.462, although reached its lowest point since 2001, but still higher than 0.4 international "warning line." At the same time, the low income level of liquidity, so that social wealth is increasingly concentrated in few hands, the growing phenomenon of polarization has become a stable and harmonious social major risks.But what behind economic inequality reflects the lack of fairness and justice in our society. Pursuing the entire proceeding of justice has gradually become the common view of all section of the community. However, due to long-term constraints of the dual social system based on household registration system, the majority of rural people can’t enjoy the same social welfare brought about by economic development, such as high-quality educational resources and developing opportunities, which in some degree lead to the deepening gap of income gap. Although in recent years, the living standards of rural residents have made great progress, but according to the official income poverty line in 2011 (2300/year), at that time there still remained 128 million of the poor in rural areas, accounting for 13.9% of the rural population; by 2014, the number of the poor was still more than 80 million. How to achieve all of the rural poor out of poverty has become a key building a moderately prosperous society.Now the related researches has also admitted that when probing into income gap, we should pay more attention to the whole process of fairness and equality of all elements. Scholars at home and abroad often use intergenerational income elasticity to measure income inequality intergenerational transfer, reflecting social mobility, indicating the degree of whether opportunities are equal or not. Intergenerational income elasticity of income refers to how much the income of parents’effects the income or social statues of their children. The higher the intergenerational income elasticity is, the weaker the intergenerational mobility will be, causing the higher the degree of social inequality. The paper also adopted this concept by using quintile regression model to make a detailed analysis of intergenerational mobility of different income groups in rural areas, and combined CHIP data and CFPS data, allowing the research extends from 1988 to 2012, which in previous studies are relatively rare.This article specifically includes six chapters. The first chapter is introduction that generally introduced the research background, significance of the research, content of the research and innovation of the article. The second chapter is literature review sorting the study of intergenerational transmission to make it possible for it to serve the research topic of this paper from three angles. Chapter III is mainly about methods and data, making a detailed introduction of the basic principles of quintile regression, introducing data sources and variable definitions. Chapters IV and V is the empirical analysis section of this article in which we can see:Firstly, the bottom income groups in rural area has an obviously weaker intergenerational mobility than the high-income groups, and as the enhancement of sub-generation income quintile, intergenerational mobility gradually increases. Secondly, vocational education and parents’ occupation has a positive effect on promoting intergenerational income mobility. Thirdly, relative poverty intergenerational transfer has become the main form of rural poverty, education and non-farm employment played a crucial role on children from poor families getting out of their condition. Finally, there remain great differences on the improved income and social class of generation getting out of poverty. Some of them didn’t make the substantially change and still have the chance to return to a situation of relative poverty. Chapter VI puts forward some political advice on advancing our country’s rural area’s inter-generation mobility, such as increasing investment in rural education, renew the forms of employment of rural residents and other innovative forms of employment, and also pointed out the shortcomings of this study.