Research On The Transmission Path Of Intergenerational Income Inequality In China

At present,China has embarked on a new journey to comprehensively build a modern socialist country and march towards the second century goal.Common prosperity is the essential requirement of socialism and an important feature of Chinese path to modernization.However,according to the data released by the National Bureau of Statistics,China’s resident income gap has exceeded the international Gini coefficient warning line of 0.4 for a long time,and is hovering at a high level.Behind the continuous expansion of the income gap,the transmission of intergenerational income inequality is profoundly affecting the change of the income gap,weakening the impact of the transmission of intergenerational income inequality,making the income and development of the children largely depend on their own talents,personal efforts and contributions to the society,and to a lesser extent depends on the income level and background of the parents,which is to ease the consolidation of the stratum and smooth the upward flow of all strata,Form a relatively smooth flow of income classes.Therefore,only by understanding the current situation of intergenerational transmission and clarifying the fundamental path of intergenerational transmission can we cut the intergenerational transmission of poverty from the root,effectively prevent class solidification,narrow the gap between the rich and the poor and achieve common prosperity.This paper first explains the research background and significance of intergenerational income inequality transmission.Then it combs the relevant research literature at home and abroad,and constructs the main research content and innovation points of this paper.Then,based on the relevant theoretical basis and relevant literature,the sample is grouped based on the structural decomposition of the income gap,and the additive and decomposable generation income inequality measurement indicators and the contribution rate measurement method reflecting the changes of different groups are used,and the data of 2012,2014,2016 and 2018 in the China Family Tracking Survey(CFPS)are used for actual measurement,To examine the structural reasons behind the changes of intergenerational income inequality and the transmission of inequality in China.Then build a path analysis model,examine the intergenerational income transmission path of each intergenerational income inequality flow group from three aspects of human capital,social capital and wealth capital,and carry out comparative analysis,and deeply explore the path transmission problem behind the structural reasons of intergenerational income inequality transmission.Finally,according to the empirical results,put forward relevant policy recommendations.The study found that,first,in the overall change of income inequality between parents and children,the income gap between parents and children is in a state of continuous reduction,and the income gap of children is highly volatile.However,from the perspective of intergenerational income inequality,from 2012 to 2014,intergenerational income inequality decreased,while from 2016 to 2018,intergenerational income inequality expanded,and the overall intergenerational income inequality was expanding.Second,different intergenerational mobility groups have different roles in the change of intergenerational income inequality in different periods.In general,the impact of the expansion group and the reduction group is more obvious.In addition,the contribution rate of the expanded group is relatively more prominent.Third,the income of parents will not only have a direct impact on the income of their children,but also have an indirect impact on the income of their children through human capital,social capital and wealth capital.In the process of causing intergenerational income inequality changes,the indirect impact path of the income advantage of parents to their children is changing.The path of human capital,social capital and wealth capital has an impact on the expansion of intergenerational income inequality,but the impact of human capital and wealth capital path has increased significantly,while the impact of social capital path is weakening.In the process of reducing intergenerational income inequality,the impact of the social capital path is not significant.Although the human capital path is significant,the impact has declined significantly.Wealth capital is becoming the most important path for intergenerational income inequality transmission.At present,although China’s intergenerational income flow has improved,intergenerational income inequality is expanding.To further narrow the income gap between residents and achieve common prosperity,we need to start with weakening the impact of intergenerational income inequality transmission.This paper believes that:first,increase the total amount of public education investment,improve the structure of public education expenditure,fair education resources,and ensure education equity.Second,improve the financing level of family education,reduce the constraints of human capital investment of parents,and reduce the burden of family education.Third,we should improve the tax systems such as inheritance tax and donation tax,give play to the role of tax regulation,and weaken the impact of the wealth capital path in the transmission of income inequality between parents.Fourth,strengthen the information symmetry of the labor market,improve the transparency of employment recruitment and personnel selection,and ensure that the employment opportunities and promotion opportunities of children are more fair.