Research On Intergenerational Income Mobility Of Chinese Urban Residents Based On Wealth Effect

Intergenerational income mobility refers to the influence of the income of the offspring on the income of the parent.The lack of intergenerational income mobility will lead to negative emotions among the children of poor families,who believe that hard work and hard work can not change their own destiny;at the same time,it will also make the children of wealthy families lack a sense of crisis,and ultimately lead to the waste of human resources and the decline of economic efficiency.In addition,the disparity between the rich and the poor will increase the contradiction between the high-income group and the low-income group,which will affect social stability to a certain extent.Intergenerational income mobility is generally measured by intergenerational income elasticity.The lower intergenerational income elasticity is,the higher intergenerational income mobility is,which reflects the higher social equality of opportunity;on the contrary,it reflects the lower social equality of opportunity.The research on intergenerational income liquidity in China started late.Most of the existing research results are based on human capital or social capital to analyze intergenerational income liquidity.However,with the rapid development of China's financial market,the total wealth of a family can no longer be simply from the parents' wage income.Composition of wealth capital,represented by financial assets,durable consumer goods and real estate value,begins to occupy an important proportion in the total wealth of the family.It is necessary to analyze intergenerational income liquidity from the perspective of wealth capital.From the perspective of wealth capital,this paper analyzes the changing trend of intergenerational income mobility of urban residents in China and its internal transmission mechanism,and puts forward policy suggestions to improve intergenerational income mobility of urban residents in China.The main contents of this paper are as follows:Research contents one:this paper combs the current research status of intergenerational income mobility at home and abroad through the measurement of intergenerational income liquidity,influencing factors,the impact of wealth capital on intergenerational income liquidity and the decomposition of intergenerational income liquidity;at the same time,it puts forward by Becker and Tomes(1979,1986).Based on the family utility maximization model,the paper deduces the positive correlation between family wealth capital and offspring income.Research contents two:this paper makes an empirical analysis on the change trend and group differences of intergenerational income mobility of urban residents in China.The empirical results show that the inter-generational income elasticity of urban residents in China shows a U-shaped change trend from 1995 to 2013.First,the inter-generational income elasticity between father and daughter is always higher than that between father and son in terms of molecular generation gender,indicating that the income of daughter is more affected by father than son.Secondly,from 1995 to 1999,the intergenerational income elasticity of offspring working in the institution was higher than that of offspring working outside the institution;from 2002 to 2013,the intergenerational income elasticity of offspring working outside the institution was higher than that of offspring working in the institution.Thirdly,from 1995 to 2013,the western region has the highest intergenerational income elasticity,the intergenerational income elasticity of the eastern region is the second,and the intergenerational income elasticity of the central region is the lowest.Fourth,from the different quintiles of the income of the offspring,the sub-generational income elasticity decreased in 1995,1999,2008 and 2013 from the low quintile to the high quintile.The elasticity has increased.From the trend of the intergenerational income elasticity of different quantiles,the intergenerational income elasticity of each sub-point has been reduced.Research contents three: This paper empirically analyzes the internal transmission mechanism of the intergenerational income mobility of urban residents in China under the influence of wealth capital.The empirical results show that wealth capital has a high degree of interpretation of intergenerational income liquidity through direct and indirect channels.Among them,financial assets have the highest interpretation ratio of intergenerational income liquidity,and the interpretation of real estate value on intergenerational income liquidity.The ratio is only lower than the value of financial assets,durable consumer goods and the years of education of the offspring are roughlyequivalent to the intergenerational income liquidity.Research content four: Based on the conclusions of this study,the following policy recommendations are put forward to improve the intergenerational income mobility of urban residents in China.Firstly,the government should increase public education expenditure,improve compulsory education and higher education system,ensure equal opportunities for education,and prevent the difference of educational resources caused by the gap of family wealth capital.Secondly,the central bank and the major state-owned commercial banks should properly raise the interest rate of deposits to ensure the savings income of low-income groups;at the same time,we should broaden the investment channels of low-income groups in cities and towns,guide them to invest in various financial products and financial products to obtain higher investment returns,and reduce the liquidity of financial assets to the inter-generational income of urban residents in China.Influence.Thirdly,firstly,the government should introduce appropriate policies to reduce the gap in educational resources caused by the gap in the value of real estate.Secondly,the government should build a large number of low-cost housing,affordable housing to meet the housing demand of low-income groups.Furthermore,government departments should introduce policies to restrict purchase and loan to restrict speculation.At the same time,we should speed up the promulgation and implementation of real estate tax,increase the cost of multiple real estate owned by speculation groups,and then limit the purchase price to a reasonable range.Fourthly,our government should improve the inheritance tax system,alleviate the direct transfer of wealth to a certain extent,alleviate the gap between the rich and the poor,and avoid the Matthew effect of poverty.Fifth,we should advocate more open consumption and education concepts,improve living standards and quality of life,make low-income groups have more open consumption and education concepts,and improve intergenerational income mobility of urban residents in China.