Empirical Analysis On The Intergenerational Income Transmission Of Chinese Residents

With the rapid development of China's economy,people's living situation has also been greatly improved.It should not be ignored that China's income distribution structure has also undergone great changes and income inequality problem has become increasingly serious.While the problem of income inequality on the horizontal dimension has been widely concerned,the income inequality on the vertical dimension needs to be more concerned.In recent years,the phenomenon of"rich second generation" and "official second generation" has become a hot topic,which reflects the lack of inter-generational income mobility.In addition,the income of the father may increase the income inequality of the children,which will eventually lead to the transmission of income inequality from generation to generation.Therefore,it is of practical significance to study the influence of intergenerational income on improving the income distribution structure in China.So,how is the intergenerational income flowing in China?Is China's intergenerational income mobility deteriorating or improving?What is the mechanism by which father's income affects children's income?What is the effect of father's income on children's income inequality?Based on these problems,the research of this paper mainly includes the following three aspects:The first aspect is the study of intergenerational income flow and its dynamic changes in China.This paper chooses to use CHNS database of micro data.By using the income transformation matrix method,we analyze the intergenerational income mobility situation of our country from the national level of.Through comparing the four year of observation of intergenerational income mobility indicators,we analyzes the changes of intergenerational income mobility since 2000.The result shows that China's intergenerational income mobility has improved since 2000,but the intergenerational transmission of poverty and elite transmission still exist.Then the regression coefficient method is used to calculate the inter-generational income elasticity of the whole country.The conclude shows that China's inter-generational income flow is gradually improving.Finally,the heterogeneity of China's inter-generational income elasticity is calculated.First,divide Chinese residents into urban and rural areas,and then divide them into different income groups to calculate the intergenerational income elasticity.The result shows that the urban intergenerational income elasticity is larger than the rural intergenerational income elasticity.Second,the mechanism of intergenerational income transmission in China is studied.It shows how the father's income influences the children's income.In this paper,conditional intergenerational income elasticity method and Blanden decomposition method are used to analyze the intergenerational income transfer mechanism in China.The changes of this transfer mechanism since 2000 are also learned.The results show that human capital represented by children's education and social capital represented by children's occupation play an important role in the transmission path of intergenerational income in China.Moreover,the role of children's education factor,which has exceeded the importance of children's occupation factor,becomes increasingly important.In the third aspect,the research on the influence contribution and action path of parental income on the income inequality of offspring.After establishing the income determination equation of children,this paper studies the contribution of various factors.These factors include the income of the father,education level of the children,occupation kind of the children and so on.Then this paper analyzes the ways of the influence of the father on the income inequality of the children since 2000.The results show that parents mainly influence the income inequality of their children through their children's occupation,and the contribution of this factor is much higher than that of their children's education.Based on the above conclusions,this paper believes that the government needs to increase investment in education,especially in basic education.It ensures that children with different family conditions have the opportunity to receive the same education.The government also needs to continue reforming China's labor market.The China's labor market system needs more improvement to create a more equal and healthier employment competition environment for all Chinese residents.Improving the employment transparency of the labor market should also be one of the policy goals of the government,which is a reflection of the norms of the labor market system.The realization of these goals can make children less dependent on the social capital of the previous generation in the experience of competing for positions.In the future,children from different family backgrounds can realize their self-worth through their own efforts.Since there is no consensus on the measuring method of intergenerational income elasticity this paper mainly uses the income transformation matrix to study the role and change of intergenerational income transmission in China.This paper also use the change of intergenerational income elasticity to verify the research conclusion.Another feature of this paper is that,unlike most of the other articles,this paper does not only study the intergenerational income mobility and intergenerational income transmission mechanism in China.On this basis,this paper also studies the effect of intergenerational income transmission on children's income inequality.The limitation of this paper is that due to the lack of data,only two factors,children's education and occupation are studied in the intergenerational income transmission process.