Research On The Impact Of Intergenerational Educational Human Capital Transmission On Income Mobility

The income gap of the society is becoming wider,which has become a hot issue that constraints the development of China's economics and society.Nowadays,the Gini coefficient in China has already exceeded the worldwide warning line of 0.4,which indicates the inequality of opportunities and resources allocation within the society.To comprehensively understand the issue occurs within the income distribution area,not only should we research the results of the unequal income distribution,but also,we should analyze the process of the income distribution.With the development of society and economics,the decrease of income mobility and the widening gap between poor and rich have constrained the future development of economics.The intergenerational income mobility is one of the indicator to measure the degree of social inequality.However,there are only a few literature in China focusing on researching such social resource allocation,which is beneficial for China to transfer the way of economic development,overcome the Middle-Income Trap and create the conditions of achieving sustainable development.Based on the research background,this paper analyzes the impact of educational human capital on income mobility and its inner transmission mechanism.Firstly,this paper explains the theoretical background,then explores the relationship between educational human capital and income mobility.Using the 2017 researching survey data,this paper selects several key variables to estimate the current social intergenerational income elasticity according to single variable log-linear model.Besides,according to simultaneous equation model,this paper examines the impact of educational intergenerational transmission on income mobility.In addition,this paper also conducts the robustness test to estimate the intergenerational income elasticity among urban and rural sub-groups.At last,to examine influential factors and to what extent the parents' income and education level could affect the education level of their children,this paper use Ordered Probit model to estimate the influence of above two key variables on their children's education level under the condition of controlling some other personal status related variables.Also,the marginal effects of each variables are estimated.Based on the log-linear model,the current social intergenerational income elasticity in China is 0.369,which is a bit of higher than most of developed countries.Through simultaneous equations model,this paper finds that intergenerational income mobility has increased from 0.369 to 0.393 after considering the intergenerational education transmission,which indicated that the basic log-linear model underestimates the intergenerational income elasticity.Besides,parents' income and education level have significant impact on children's education level especially for the possibility to receiving high-level education(bachelor degree or above).According to above conclusions,in collaboration with current development situations of society,this paper put forward the following three suggestions for government to improve social income mobility.Firstly,improving the educational system and providing fair opportunities to receiving education for everyone.Secondly,improving the education loan system and increasing the level of educational finance.At last,improving the market competition environment and relieving the income gap between urban and rural areas.