Research On The Measurement Of Intergenerational Income Flow And Family Size Effect

The transmission of income between father and child is one of the important factors of the growing income gap between residents.Studying the problem of intergenerational income flow in China is of great significance to reducing the income gap and enhancing the fairness and justice of society.Family size(number of children),as an important factor determining the distribution of resources within the family,will inevitably affect the level of income flow between fathers and children.Based on the above background,this article uses the 2016 Chinese Family Tracking Survey Data(CFPS)to take the offspring’s income as the explanatory variable and the interaction term between the parent’s income and the family size as the explanatory variable.It controls the offspring’s gender,urban and rural household registration,education Based on the degree and the age range of children and fathers,a two-stage least squares regression model,an ordered multi-class Logistics regression model,and a quantile regression model were established to measure the intergenerational income mobility in China and the effect on family size.Perform analysis.The results show that the intergenerational income elasticity value in China is between 0.2 and 0.3,and 20%-30% of the offspring’s income is still affected by the parent’s income.In terms of calculation methods,this paper finds that the fitting effect of the ordered multi-class Logistics regression method is better than the two-stage least squares regression method,but the latter’s measurement of intergenerational income elasticity is closer to the true value than the former.This article finds that family size has a significant impact on intergenerational income flows.The one-child family has the lowest intergenerational income mobility,the second-generation family has the largest intergenerational income mobility,and the three-generation family and above have middle-generation income mobility.At the same time,there is a significant negative correlation between family size and the years of education of the offspring,and there is no obvious relationship between the offspring’s occupational status,but there is a tendency that the larger the family size,the lower the offspring’s occupational status.Therefore,the effect of family size on intergenerational income flows is a double-edged sword.On the one hand,the expansion of family size can promote the increase of intergenerational income mobility,reduce the impact of fathers on children,and bring more opportunities for competition and development for children;on the other hand,the larger the family size,the more educational resources More fragmentation restricts children’s access to better education,hinders personal career development,and consequently restricts income flows.Taken together,the intergenerational income mobility of second-born families is the strongest,indicating that the “comprehensive second child” policy that has been implemented in China will play a positive role in solving the problem of intergenerational income transmission.