The Degree Of Marketization And Intergenerational Income Flow

There are many factors that affect intergenerational income liquidity,and the degree of regional marketization is one of them.China's marketization is a process from planned economy to market economy.Its essence is to reduce transaction costs and protect private property rights.The market-oriented reform brings the efficiency of resource allocation and the activity of economic subjects,enriches the channels for residents to obtain high income,and ultimately helps to improve the intergenerational income liquidity.The data used in this paper are the survey data of China's family income project(chip)in 2008 and 2013,as well as the statistical data of China's urban statistical yearbook and China's regional statistical yearbook.In this paper,we first use the city data to construct the market-oriented index at the city level,and then study the impact of market-oriented index and its sub indexes on the intergenerational income liquidity in China,as well as the change trend of this impact from 2008 to 2013.Finally,the paper also discusses the urban-rural,regional and stratum heterogeneity of the impact of marketization on intergenerational income mobility.The empirical results show that:(1)on the whole,the regional market-oriented reform has a significant role in promoting the income of the offspring,and helps to reduce the intergenerational income elasticity.Under the condition that other conditions remain unchanged,if the marketization score of a region is increased by 1 point,the intergenerational income elasticity of residents in that region will decrease by 0.023.In addition,the market-oriented reform on the promotion of the income of the offspring appears the phenomenon of marginal decline.(2)In the market segmentation index,the degree of activity of non-state-owned economy and the degree of openness to foreign trade can significantly reduce the intergenerational income elasticity,and then improve the intergenerational income liquidity.The research on the time trend of the impact shows that the decreasing effect of the non-state-owned economic activity and foreign trade openness on the intergenerational income elasticity decreases with time.(3)From the perspective of urban and rural areas,the market-oriented reform can significantly improve the intergenerational income mobility of rural and urban residents,but the impact degree decreases with time.According to the three regions of East,West and East,the marketization index can significantly improve the social mobility of residents in each region,but the degree of influence decreases with time.From the perspective of different income classes,the influence of marketization on intergenerational income mobility has class heterogeneity,but there is no obvious regularity.Finally,this article puts forward policy recommendations,such as further deepening market-oriented reforms;focusing on low-income groups and strengthening human capital investment in their children;further promoting the development of the non-state economy;adhering to trade liberalization and improving the level of opening up;deepening rural areas The market-oriented reforms have enabled the market economy to become active in rural areas.