Intergenerational Income Mobility And Transfer Mechanism In Urban Residents Of China

Over the past 40 years of reform and opening up,China's economy has achieved long-term and steady growth,and its people's life has been greatly improved.At the same time,under the multiple impact of economic system transformation,labor transfer between urban and rural areas and between regions,and industrial transfer worldwide,the social class structure is constantly reconstructing and splitting.A large number of new observations and studies on social reality show that social stratification and solidification are becoming an indisputable fact and further aggravate social inequality and wealth gap.Promoting intergenerational mobility,adjusting the income distribution relationship reasonably and narrowing the gap between the rich and the poor are the core issues facing Chinese society at present.Based on CHIP data from 1995,1999,2002,2008 and 2013,this paper makes an empirical analysis of the degree,trend and internal structure of intergenerational income flow of urban residents in China,and discusses the relationship between household assets,education level,social capital and intergenerational income transfer.Specifically,the main research contents include the following three aspects:(1)based on the basic regression equation,the intergenerational income elasticity of urban residents in China is estimated,and its time trend is investigated;(2)in order to further explore the internal structure of intergenerational income elasticity changes,first of all,the inter-generational income elasticity is investigated according to two sub-samples,which are divided into high and low income classes.Secondly,this paper also examines the gender differences in intergenerational income elasticity.Finally,based on the quantile regression,the effects of different levels of child income on parent income were investigated.(3)the transfer mechanism of intergenerational income was decomposed by using "conditional intergenerational income elasticity" and Bladen decomposition and taking education level,social capital and family assets as intermediate variables.The empirical results show that from 1995 to 2013,China's urban residents of intergenerational income elasticity in the range of 0.30?0.48,with a mean of 0.39,considering the possible downward bias,intergenerational income elasticity real average should be in 0.4 above,that the father has important effects on the generation of offspring revenue,intergenerational income mobility situation is not optimistic.In terms of time trend,the intergenerational income elasticity of urban residents in China is basically u-shaped,which first decreases and then increases.The highest intergenerational income elasticity was in 1995,at 0.48,before falling all the way to 0.30 and rebounding after 2008.Second,about the intergenerational income elasticity of the internal structure of the conclusions include:(1)according to the parent income divided into high and low income class two samples,and their intergenerational income elasticity,according to the results for urban residents in China,1995-2002 of intergenerational income elasticity significantly improve benefits mainly high-income people the intergenerational income correlation decreases,and 2002-2013 years of intergenerational income elasticity obviously rise mainly from low-income groups of intergenerational income related increase;(2)according to the results of gender separation of the offspring,the inter-generational income elasticity differences between the offspring and the offspring have been reduced in 2013 compared with 1995,indicating that the market-oriented reform of China's labor market is progressing step by step.(3)based on quantile regression,according to the results of the intergenerational income elasticity middle-income children haven't changed much,high-income children the value reduced year by year,but the intergenerational income elasticity of low-income children up to 0.47 in 2013,is the highest,that of intergenerational income elasticity in 2008 after a sharp rebound in the intergenerational transmission of poverty is the major reason for the constantly strengthened.Finally,the decomposition results of intergenerational income transfer mechanism show that education level does have significant influence on intergenerational income transfer,but its influence has declined in recent years.The explanatory power of social capital to intergenerational income transmission is gradually increasing.Although the rate of return of social capital is not significantly increased in absolute value,the explanatory power of social capital to intergenerational income elasticity is higher than education level and is still increasing.Property values of intergenerational income transfer,there is an upward trend in the explanatory power of the explanatory power of financial assets has remained at about 30%,the explanatory power of both greater than the level of education and the explanatory power of social capital and the great explanatory power does not come from investment,but directly from the high rate of return.For the family,the father can choose to help the offspring to obtain higher income indirectly by increasing the education level of the offspring(that is,"give fish"),or by accumulating assets and rent-seeking(that is,"give fish"),so as to directly help the offspring to obtain higher income.The choice of "fish" and "fish" is actually the choice of social development path.Different choices will have different impacts on social development.The choice of "fish",power corruption and political rent-seeking will be further aggravated,and the cornerstone of long-term social stability will no longer exist.Therefore,this paper believes that:first,the government should improve education system and promote the reasonable allocation of education resources;Second,we should deepen the reform of the labor market to improve the ability of resource allocation.Finally,the government should implement the regulation idea of "housing and housing without speculation" to curb the disinvestment of funds.