Decomposition Of China's Intergenerational Income Flow Mechanism

Intergenerational income mobility is the most direct indicator that reflects social fairness and justice, and the study found that justice and fairness is a basic human need. There are many papers about intergenerational income mobility by domestic scholars and foreign scholars, but most of these papers are about the measure of intergenerational income mobility(intergenerational income elasticity measures?the influence factors of intergenerational income elasticity?the development trend of intergenerational income mobility and different region's comparison of intergenerational income mobility). There are few scholars to study the effect of family background on intergenerational income mobility. Due to the different family background may affect intergenerational income mobility, to study the effect of family background on intergenerational income mobility can help us to identify and solve the social problems of our country. This paper use CGSS2006 datas?double logarithmic model and the existing research results to calculate the intergenerational income elasticity of urban and rural areas as well as different income levels. The results show that the intergenerational income elasticity of urban is 0.22 and rural is 0.50, the intergenerational income elasticity is much higher than the world average level and the income of rural children to a large extent dependent on the parent's income. This shows, the intergenerational income mobility is weak and rural areas are failed to achieve justice; The intergenerational income elasticity of higher income level?middle-income level and lower income level are 0.51? 0.56?0.26, thus it can be seen that the intergenerational income mobility of middle-income level and higher income level is weak, on the contrary, lower income groups' intergenerational income mobility is higher. Based on these, this paper also use investment-return model and CGSS2006 dates to analyze the transmission mechanism of intergenerational income by different income groups. The empirical results shows that the wealth capital is the main pass way of intergenerational income in our country, the second is human capital, family background and social capital have larger impact on the intergenerational income mobility of rural areas; Based on the study to the different income levels, the wealth capital and the human capital are the main pass way of intergenerational income in our country, family background and social capital have larger impact on the intergenerational income mobility of the lower income levels, social capital have larger impact on the intergenerational income mobility of middle-income levels.On the basis of empirical analysis, in order to improve social intergenerational income mobility, promote the harmonious development of our country, the government need to take necessary measures to safeguard the masses of residents "living house", try to realize equality of housing allocation; In addition, we still should adhere to education as the basic, popularize knowledge of the public, strengthen the elite education; At the same time, the government also need to implement feasible political reform and weaken power rent-seeking behavior; Finally, we should advocate rural residents to reduce the number of children and improve the quality of their offspring. The above suggestions are aimed at improving the intergenerational income mobility in our country, promoting the harmonious development of our society.