Measurement And Mechanism Decomposition Of Intergenerational Income Mobility Of Chinese Residents

Since the reform and opening up,China's growing economic aggregate and the lack of intergenerational income mobility coexist,and the phenomenon of class consolidation and "Second Generation"has aroused widespread concern.Intergenerational income mobility indicates the relationship between children's income and parents'income,which is generally measured by intergenerational income elasticity.By analyzing and summarizing the research methods and results of relevant literature at home and abroad,there are some shortcomings in previous studies,such as estimation errors,not fully opened"Black Box"of Intergenerational Income Transfer Mechanism,and so on.Therefore,to study the liquidity characteristics of intergenerational income and reveal the mechanism of intergenerational income transmission has certain social significance and academic value.Based on this,this paper carries out the following research.Firstly,the intergenerational income mobility in China is measured.The research was carried out with the survey data of CHNS from 1989 to 2015.The income data of parents and children are obtained by matching father and son,and the intergenerational income elasticity(IGE)of our country which is 0.505 is obtained by using the 10-year average income.The results show that the phenomenon of income transfer between generations is obvious,and the liquidity of inter-generational income is small.Furthermore,the trend of IGE and the differences between groups are analyzed by using one-year and average data.The results show that China's IGE from 1989 to 2015 increases first and then decreases,and 2004 is a turning point.The IGE in urban areas is greater than that in rural areas.The IGE in eastern China is the highest,followed by that in central China and the lowest in western China.Secondly,this paper studies the characteristics of intergenerational income mobility in China.This paper analyzes the class characteristics of the intergenerational income mobility in China by constructing the intergenerational income transformation matrixs,which divide the income of father and son into five equal parts.The results show that the phenomenon of non-mobility at the top and bottom classes is more obvious,and China is prone to intergenerational transmission of poverty and intergenerational transmission of elite.Thirdly,the mechanism of intergenerational income transmission is studied.This paper improves the mechanism decomposition method proposed by predecessor,and uses the improved method to decompose the mechanism of intergenerational transmission of income.The results show that occupation and education are important paths of generation income transmission,and the role of occupation in generation income transmission is obviously greater than education.The results show that occupations account for 15.02%and education 5.84%of all factors affecting intergenerational income transmission,and education and occupation can explain 20.86%of the income transmission between generations.Finally,in order to improve the intergenerational income mobility,the corresponding suggestions are put forward based on the research results.In order to reduce the intergenerational transmission of high-income groups,the government should adjust excessive income and reduce the impact of high income on opportunity inequality.Besides,in order to reduce the intergenerational transmission of low-income groups,the government should strengthen training for low-income people and improve their competitiveness in finding jobs.In addition,in order to weaken the impact of parents'occupation and education on opportunity inequality,the government should improve the employment market mechanism,channel the upward occupational mobility of vulnerable groups,pay attention to the differential distribution of educational resources,and ensure the educational level of backward areas.