Empirical Research On The Intergenerational Income Mobility Of The Residents In China

Now, the excessive income disparity has drawn strong attention of the general public and become the focus of all walks of life. The excessive income disparity will influence national economy seriously,it can also cause negative influence to social stability.So, The in-depth study of the reasons causing income disparity has important theoretical value and practical significance of economic work for reference.Recently, researchers have realized that the study should pay considerable attention to the inequality of opportunity and its influence on income disparity instead of only focusing the outcome gap. In english literature,the intergenerational income elasticity is considered one of the best measures of the degree to which a society gives equal opportunity to its members. The smaller the elasticity is,the stronger the social mobility is. That is, the society will provide more opportunity and justice.With the degree of China's market gradually deepened,we want to know the intergenerational correlation of incomes between young generationa and parents in china.we are also eager to know the channels through which the intergenerational income can be transmitted smoothly? What is the relationship between income disparity and inequality of opportunity due to the income of parents? Then, we also estimate the extent to which government spending achieves this goal of increasing intergenerational income mobility.Obviously,discussion of intergenerational income mobility will provides a new perspective for the study of income gap. At the macro level, this may have a significant impact on the government policies of eliminating the income gap Meanwhile, considering the situation in china may provide more information about the causes and consequences of intergenerational income transmit, Consequently enrich the relevant research literature.Besides the conclusion,the paper consists of 8 chapters.The preface tell you of the backgroud,significance, technology route and methodology of study. It put more attention to the analysis of backgroud which deriving our goal and question. In chapter 2and chapter 3,the paper mainly introduced briefly and reviewed the related literature both abroad and at home.Based on the summary,it point to the mechanism for intergenerational income mobility. Chapter 4 presents the data which include the data source,defining variables etc.It put emphasizes on the sample land sample 2 which are constructed from the China Health and Nutrition Survey (CHNS). On accounting of the urban-rural disparity, chapter5 analyze the intergenerational income elasticity. Based on the assumptions that the permanent income is time-invariant,the paper provide estimates of permanent income mobility across generations after taking account of multiple selection,such as the effect of transitory earnings,life-cycle bias, the selection into employment and coresidence selection using quantile regression,then compare the result of all estimated models such as the Propensity score weighting procedure, the method of Two step-Control Function and others. In chapter 6,in oeder to unveil the mysteries family "Black box",the paper analyzed the main channels of intergenerational income transmission by establishing Structural Equation Model using AMOS.In chapter 7,according to the concept of equal opportunity defined by the world bank(2006),the paper mainly analyzed the income disparity of young generation caused by parents. Chapter 8 relaxs the assumptions and analyzes the influence of the regional government spending construction on the intergenerational correlation of incomes between young generationa and parent using three-level and panel data statistical models.The empirical study indicate that the biases due to the selection into employment and coresidence selection should not be ignorable. The paper also shows that the Propensity score weighting procedure seems to be effective in attenuating the Coresidence Selection,while the method of Two step-Control Function is superior to others in attenuating the Multiple Biases.If we do not take account of the sample selection,the result show that the intergenerational income elasticity is higher than that of rural areas.But in view of all biases,the paper find the intergenerational income elasticity of urban is higher than that of rural areas using mean regression. On the contrary, the conclusion is different using quantile regression which means the intergenerational income mobility of urban is stronger than that of rural areas in china.By establishing Structural Equation Model (SEM) using AMOS,the paper find the degree of fitting of equation in rural areas is better. After standard procedure, the result indicate that the most important factor to the children'income is the father's permanent income followed by children's education, occupation and health,which are indirect effect. The health of young generation contribute nothing to the income in rural areas.Based on the Quantile Regression adjusted estimates,the result show the income-gap of children between urban and rural areas in china becomes smaller as the quantile increasing,but the income-gap due to opportunity inequity seems to increase.The paper also find the intergenerational income elasticity has fluctuated with a inverted "U "trend.In addition,the paper suggests that the government spending including the expenditure for agriculture and the service-oriented public expenditure is intended to increase the children'income.Then chapter 8 channels the government spending into the empirical study. The ratio of the expenditure for agriculture and the service-oriented public expenditure will increase the child's income; The result also find that the intergenerational correlation is strong,although the intergenerational income mobility is increasing weakly.