Research on the Measurement and Impact Mechanism of Intergenerational Income Mobility in Urban and Rural China
Based on a total of 8 rounds of CHIP data from 1995 to 2013 and CHFS data(2015 and 2017)and the two-sample two-stages least squares estimation(TS2SLS),the trend and impact mechanism of intergenerational income mobility of Chinese urban and rural households during a long period are explored.It is found that the intergenerational income mobility of Chinese urban and rural residents displays an up and down trend during a long period,and urban households'intergenerational income mobility gradually rises after 2002 and rural households'intergenerational income mobility gradually rises after 2008 respectively.The intergenerational income mobility of rural households is higher than that of urban households.With the passage of the offspring's birth year,the intergenerational income mobility of birth cohorts from urban households displays a rise first and then fall trend;On the contrary,the intergenerational income mobility of birth cohorts from rural households shows a fall first and then rise trend.The result of the decompose analysis of transmission mechanisms suggests that fathers'non-educational factors play a leading role in intergenerational income transmission for both urban and rural residents.Compared with urban households,rural fathers'non-educational factors have even more impact on the intergenerational income persistence.Benefiting from the improved overall social institutional atmosphere,the effect of urban fathers'non-educational factors on intergenerational income transmission is gradually decreasing and that of urban fathers'educational factors is gradually increasing.Especially,the effect of urban middle and low income family's educational factors has been sharply improved.However,the impact of rural fathers'non-educational factors on intergenerational income mobility is staying on the rather high level.In view of the results,some policy suggestions are put forward.Firstly,in order to create condition for human capital playing a greater role in individual's development,Chinese government should continue promoting and deepening the reform of market-oriented economy system,at the same time,further accelerates the development of new industrialization and urbanization and implements innovation development strategy.Secondly,government should deepen the reform of income distribution system and residential system,meanwhile,establish and improve urban-rural integrated labor market.Thirdly,government should improve public education policy.On the one hand,government should increase public education expenditure,especially that in primary and secondary schools;On the other hand,government should pay attention to the balanced development of urban and rural education,in which improve the quality of teachers and teaching facilities in rural areas and increase education assistance efforts for low income families in urban and rural areas,making children from low income families get out of intergenerational transmission of poverty.Lastly,overall coordinate equalization of public services including high quality education and healthcare between developed regions and less developed regions.
intergenerational income mobilitytwo-sample two-stage least squares estimationhuman capitaleducation