Research On The Solution Of Stratum Solidification Of Intergenerational Income

How intergenerational income flows and whether its results can break the "stratum solidification" pattern caused by generation-to-generation transmission of income inequality are the focus of individual,social and government attention and an important proposition of economic and social development in China.Becker and Tomes(1979),Solon(2004)and others point to the classical research,intergenerational income flow and education and other basic public service quality is closely related.The theory of utility maximization shows that the uneven resources of basic public services will continue to cause labor migration.Therefore,there is a bias in the estimation of intergenerational income flows without considering labor migration.This paper mainly analyzes the causal mechanism behind intergenerationaleconomic status transfer from the following two aspects: First,the quality of basic public services has always been considered as the main tool of intergenerational income flow.Based on the verification of this proposition,this paper takes labor migration probability as a local instrumental variable to analyze the impact of labor spatial choice.How will intergenerational income flow change when access to basic public services? Secondly,through the heterogeneity of individual and regional levels of labor force,this paper studies the impact of labor migration on intergenerational income flow.On the empirical level,this paper chooses nine rounds of CHNS(China Family Nutrition and Health Survey)data from 1989 to 2011 to carry out the research from five aspects: First,Becker and Tomes(1979)Intergenerational Income Flow Analysis Model as the starting point,from the horizontal change of time and the vertical heterogeneity of regional economic development level.Secondly,according to Oaxaca-Blinder decomposition method,this paper decomposes the income inequality between urban and rural offspring with large differences in economic development;thirdly,it analyzes the two-phase overlapping generations model including basic public service quality by panel random effect regression analysis.Fourthly,considering the labor migration,Heckman two-step method is used to estimate the intergenerational income elasticity equation.In the first stage,Probit model is used to estimate theimpact of the quality of basic public services on the decision-making of labor migration.Fifthly,H.Eckman two step regression method is used to study the effect of labor migration on intergenerational income flows.The results show that: firstly,intergenerational income liquidity is still at a low level,the benchmark regression and income elasticity is0.544,intergenerational income elasticity shows a "M" downward trend with time,intergenerational income liquidity in economically developed areas is better;secondly,the quality of basic public services can effectively improve intergenerational income The quality of basic public services,especially the quality of education,has the greatest impact on the migration of labor force.Fourthly,labor migration can significantly promote intergenerational income flow,and strengthen the role of basic public services such as education in promoting personal income.Migration to the economically developed areas of individual labor force can significantly improve the intergenerational income mobility.Both theoretical mechanism and empirical research conclusions show that the government should continue to implement the policy of equalization of basic public services.The current accurate poverty alleviation work should not only include economic poverty alleviation,but also include public service poverty alleviation,improving the fairness of access to public services,and weakening the differentiation of educational level of children.We should relax the relevant factorsrestricting the free flow of labor force,rationally handle the huge differences in welfare enjoyed by different household registration and different regions,and speed up the improvement of relevant social security systems,such as medical care and social welfare security of labor force.