Dynamic Study On Intergenerational Income Mobility In Our Country Under The Background Of Transition

Since the reform and opening up, the continuously transformation of China’seconomic.system has promoted the economy having a rapidly and stably growth, and italso have promoted the sustainedly and rapidly development of the national society. Theconstantly increased income gap between our residents has become the focus of publicattention, and the inequality of income has aroused more and more attention too.In previous studies, the Gini coefficient is a standard measure of income distribu-tion gap, in recent years, the academic community has been gradually focus on the newindex as a measure of equality of opportunity, what was called intergenerational incomemobility. Intergenerational income mobility refers to the extent that a person’s incomelevel is determined by previous generation of him, with the intergenerational incomeelasticity measuring the size of its liquidity.Then, as the degree of market of our countryeconomy deepening gradually, how big is the dependency that the younger generationin each period depended on the economic income of their fathers?What is the trend ofthis "dependency" developing? What are the main path transmitting such income"dependency"? Discuss on these issues is exactly the starting point to confirm the topicof this article, to explore these issues also may have a significant impact on governmentpolicy that drafted to eliminate inequality.In research methods, this paper take both the oretical and the empirical researchmethods to discuss deeply about the dynamic changes of the international flow ofincome generation of our country. Theoretical Study mainly uses deductive methodwith a combination of micro and macro mode, to analyse the status of intergenerationalincome mobility and the dynamic changes of our country. In the empirical study, usingmeasurement tools to analysis the latest data from China Health and Nutrition Survey(CHNS) database, and analysis Chinese families intergenerational income mobilityfrom the educational, the vocational, and the social experience empirical. The mainstatistical methods are: transformation matrix, fmultivariate selection model and pathanalysis model.In the first, this paper introduces the basic definition of intergenerational incomemobility and human capital, summarize and compare the conclusions of previousstudies at home and abroad through reviewing of literatures, and make a theoretica analysis about the status and the transfer mechanism of intergenerational incomemobility, proposed the subhuman income transfered by offspring capital income, andthe family background is the basic factor of human capital.In order to investigate the dynamic changes of the international flow of incomegeneration in our country, this paper research three representative data from ChinaHealth and Nutrition Survey (CHNS) show in1991,2000and2011, using theconversion matrix and regression analysis of respectively, generation to reserch therevenue mobility. By comparing the flow rate of the transformation matrix in this threeperiods and the regression calculated by elasticity equation, shows the intergenerationalmobility increased trend, which is due to government investment in human capital(including spending on public education and health care, fewer investment for poorhouseholds and wealthy family gap of expenditureless, Etc.), social change, increasingemployment opportunities for market spending bring a number of opportunities for thechildren of the poor to improve their own destiny.Secondly, this paper research intergenerational income mobility on two issuesabout the urban-rural differences and gender differences in three periods. The resultsshow, with transformation and development of economy, urban-rural differences andgender differences have emerged the decreasing trend.Finally, according to the empirical results, I make some policy recommendations tostrengthen intergenerational income mobility of Chinese urban and rural residents,mainly aspects of the rational allocation of educational resources, the continuousimprovement of social security system, the gradually proceed of the reform of thehousehold registration system and so on.