The Mechanism Of Labor Migration Promoting Intergenerational Income Mobility

The unbalanced development among regions widen the income gap,and labor continuously migrate from underdeveloped areas to developed areas driven by higher income.However,there are still many "discrimination" problems in the process of migration.Many studies have explored the causes of income inequality from the perspective of family background.Compared with the locals who with rich social resources,the migrations always suffer unfair competition.Researching the impact of labor migration and intergenerational inheritance on labor income,has policy value to reverse the class solidification and narrow the income gap.The research method is from the Todaro Model and the Cost-Benefit theory to construct an extended migration-decision model.Then based on CHIP data,the statistical measures and econometric model are applied to empirically test the theoretical hypothesis.In view of the direct correlation between job and income,the phenomenon of intergenerational inheritance is studied according to industry standards,so as to measure the degree of intergenerational inheritance and compare the differences among groups.Learning from the traditional method(Blau and Ducan(1967)),and thinking of the fact that China's female employment rate is relatively high.This paper take account of the influence of parents on children's employment choice,instead of adopting the traditional method that only consider father's effect.The index results show that there are widespread and significant industry inheritance phenomena in China,especially in high-income industries such as the financial industry.Intergenerational inheritance has seriously affected the fair competition in the labor market.However,the migrant force with lower industry inheritance,and its intergenerational impact is weakened.In order to further reveal the impact of migration and industrial inheritance on intergenerational income mobility,both migration and industry inheritance were included in the intergenerational income elasticity(IIE)estimating model.The stepwise regression result shows that the model is reasonable and the estimation result is stable.Then differences among groups were revealed by quantile regression,the study found that:migration affects personal income through two paths,on the one hand,the return on human capital is raised,the wages of low-income labor are improved,make their incomes flow upward.On the other hand,intergenerational influences can be weakened,and the role of social capital in the labor market can be weakened,thereby through reducing industry inheritance to increase the IIE.