An Empirical Study Of Social Capital And Intergenerational Income Flow

Over the past decade,although the gini coefficient of China had been declining,but it always remained above the international warning line of 0.4,a huge income gap had a very negative impact for the steady development of economy.Under this background,the study of income inequality has begun to emerge,there are both from a static perspective,such as the gini coefficient,which measure income inequality,and from a dynamic perspective,such as intergenerational income flow,which further explore the changing trend of income gap.However,there is not much analysis of the factors that affect the intergenerational income flow,especially the impact of social capital.Although there are many literature to seize the factor of social capital,but most of them used only one proxy variable-social network for analysis,then the meaning of social capital is very extensive,it is not accurate to use only one aspect.Based on the rural sample data of the latest Chinese Household Income Project(CHIPS)in 2013,as well as the division of power-based social capital and mutual social capital,the paper selects six alternative variables of social capital,then do multiple regression to offspring income.On this basis,the artical introduces the intermediate variables-human capital investment to the analysis of the influence path between social capital and offspring income.On the empirical method,this paper comprehensive use of intergenerational income transition matrix,the basic regression equations,the mediation effect test conditions and income elasticity method.Through the empirical results and the theoretical hypothesis,this paper draw the following conclusions:First,income mobility in our country is weaker at present.The transmission of intergenerational income is very common.This is harm to realize the goal of the well-off society.Second,the alternative variables of social capital(father's political landscape,whether father for a village cadre,father's degree of education,household consumption expenditure,high levels of social networks),human capital investment and offspring income show a significant positive correlation.Third,the influence that power-based social capital to offspring income is quite big.Such a relational society in our country,the construction of network has always been important,and in this network,the father's political identity enjoy a dominant position.Fourth,the mutual social capital has less influence on offspring income.This is mainly based on the situation of our country,the social status of right to suppress has not been improved thoroughly.The return rate of social capital which built through thepersonal efforts of the day after tomorrow is less than the social capital of political rights.Fifth,human capital investment is an important path that most of the social capital effects on offspring.Level of education is an important reason for the gap between the rich and poor.Finally,according to the empirical results,this paper puts forward relevant policy recommendations:through community activities to improve individual social capital of low-income groups,and concentrate on education investment of them.In addition,it need to further improve the social mechanism,and resist the "relationship" type of society resolutely,improve the return rate of the mutual social capital,then reduce the return rate of the power-based social capital.