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

In the past few decades,Chinese economic growth rate and total GDP have been creating records.Chinese economic construction has made remarkable achievements.Compared with the year-on-year increase in GDP,the happiness index of Chinese nationals has declined year by year.At the same time,the growing gap between the rich and the poor and the uneven opportunities among Chinese residents are inconsistent factor behind the miracle of economic growth.This is also the reason why the happiness index has fallen year after year.Intergenerational income mobility is used to measure the degree of the position of offspring in the distribution of income relative to its parent.It is also one of the important indicators to measure equality of opportunity.Intergenerational income elasticity is an important indicator to measure the mobility of intergenerational income.Therefore,from the perspective of the intergenerational transfer of healthy human capital,this paper discusses its impact on intergenerational income mobility.The increase of intergenerational income mobility can give full play to the optimal allocation of social resources,promote the transformation of the economic development mode,and realize the sustainable,stable and healthy development of the economy.This paper mainly analyzes the impact of health human capital on income mobility.Firstly,this paper explains the definition and theory of intergenerational mobility and so on,and reviews the existed literature existing in both China and abroad.Then explores the relationship between health human capital and income mobility.Using the 2017 researching survey data of Anhui University of Finance and Economics,this paper selects several key variables from the existed literature and using OLS to estimate the current social intergenerational income elasticity.Besides,using simultaneous equation model,this paper also examines the impact of health intergenerational transmission on income mobility.This paper also analysis the difference between country and city,the difference between gender,in other words,compare the intergenerational elasticity between rural and city,men and women.Furthermore,the influence of the parents' health and income level on the health level of the children was emphatically investigated with the conditional intergenerational elasticity model,and the probability of the change of the individual characteristic variables of the parents was analyzed by estimating the marginal effect of the variables on the changes of the children's corresponding health level.As a result,this paper has three findings.Firstly,China has a real high intergenerational elasticity.According to the regression result,the intergenerational elasticity between the father and the child generation is 0.0700,the intergenerational elasticity between the mother and the child generation is 0.1115.And because of the limitation of the data,the result may also have a downward deviation,which means thatthe true elasticity of China is higher than many developed countries.Second,the transmission of health capital does have an effect on the income.Through simultaneous equations model,it can be seen that intergenerational income elasticity between the father generation and the child generation has decreased from 0.0700 to 0.0637 after considering the intergenerational health transmission,and the intergenerational income elasticity between the mother generation and the child generation has decreased from 0.1115 to0.1088 after considering the intergenerational health transmission.It can be explained that intergenerational transmission of health will affect the income level of the offspring.Finally,intergenerational elasticity has gender and rural urban heterogeneity.According to the regression of sub-group data,the elasticity of rural is higher than that of the city,the elasticity between parents and girls is higher than that between parents and boys.Based on the above conclusions,this paper put forward the following three suggestions for government to improve social income mobility of China.First,increase public health expenditure and optimize the supply structure of medical services.Second,organically combine public financial use with medical insurance payment.Third,strengthen the attention to women and children and ensure that women can get equal treatment in their work.