Intergenerational Income Mobility Of Urban And Rural Residents In China

After more than 30 years of rapid development of the Soviet Union,China's position in the international community continues to improve.Nowadays,people's quality of life is getting better and better,and the problem of income gap in China is becoming increasingly prominent.Before 2009,China's income gap has been widening.China has already exceeded the Gini coefficient warning line used to measure the income distribution gap.Although the gap between rich and poor has declined in recent years,there is still a large gap between rich and poor in China.Gini coefficient,as an index to measure the gap between the rich and the poor in a country,can only reflect the situation of the gap between the rich and the poor in a country,but can not reflect the factors behind income inequality more deeply.Intergenerational income flow can reflect the dynamic results of income distribution.We can explore the current social development status and future development trend through intergenerational income flow.Intergenerational income elasticity is used to measure the extent to which children's future income is affected by the previous generation.This paper calculates the generation income elasticity interval in China by using the CHNS data from 1989 to 2015 through the double logarithmic model.The inter-generational income elasticity is calculated from urban and rural areas,Eastern and Western regions,high,middle and low income groups respectively.The results show that the elasticity of intergenerational income in China is between 0.45 and 0.56,while the elasticity of international intergenerational income is about 0.4,which shows that the income of our children is greatly influenced by their parents,and the social intergenerational income mobility is relatively low.In recent years,the inter-generational income flow in urban and rural areas has gradually converged;the inter-generational income mobility in the eastern,central and western regions has changed steadily,and the inter-generational mobility in the eastern region is stronger;for different income groups,several surveys show that the inter-generational income flow in the middle-income groups has greater changes,and the inter-generational income mobility of the high-income groups is stronger.Looking at the trend of inter-generational income elasticity over the years,we can see that before 2004,China's inter-generational income elasticity had high volatility,and inter-generational income mobility was low.In the early period,there was a big gap between urban and rural intergenerational income mobility.With the economic development and urbanization rate increasing,the change of intergenerational income elasticity tended to be smooth,the gap between urban and rural intergenerational income mobility narrowed,and the intergenerational income mobility increased.The key to the study of intergenerational income mobility is the transmission mechanism behind it.This paper decomposes the transmission mechanism of intergenerational income from human capital and social capital through Blanden decomposition method.The results show that human capital represented by education and social capital represented by occupation are important factors affecting intergenerational income flow.Human capital represented by education has a higher rate of return on investment and a greater impact on intergenerational income flow.Based on the above results,in order to improve the intergenerational income mobility of urban and rural residents in China,the government should promote urbanization and narrow the gap between urban and rural areas;increase investment in educational resources,encourage support for education,appropriately extend compulsory education according to regional conditions;provide employment guidance,improve the employment market mechanism,and improve the transparency of employment in formation.