Analysis Of Offspring Income Gap Based On Household Survey Data Under The Perspective Of Intergenerational Effects

Since the reform and opening up,many national policies,such as the reform of the economic system,has promote the economy of our country to increase steadily,which has a positive effect on the development of the whole country.With the rapid development of economy,the living standard and the wage level of our country's residents has been steadily improving.However,the huge wage gap between residents especially income gap from generation to generation is also expanding,which is harmful to the society's stabilization and will cause great negative impacts on sustainable economic development.The reasons of the wage gap between children in rich families and poor families,on the one hand,is the different individual characteristics,while,on the other hand is different labor market returns with the same characteristics.Firstly,based on status both at home and abroad,this paper carried out theoretical analysis with the combination of transmission mechanism;Secondly,the descriptive analysis of relative variables is followed based on China Health and Nutrition Survey(CHNS);Finally,we evaluate the offspring income gap between poor and rich families with the methods of quantile regression.Then we decompose this gap into characteristics effects and returns effects with the methods of quantile regression,which provides a comprehensive analysis of offspring wage in different income families.In this paper,the empirical results show that:the intergenerational income elasticity of China is in the middle and upper position in the whole world,which indicates the weakness of social income mobility and the consolidation of the social hierarchical system.Wage of children in rich and poor families is influenced by father generation in different quantile.Regardless of the children in higher income families or low income family,while,we find that it's the characteristics that mostly determine the income and return effects can only work in low quantile.It leads to the conclusion that government transfer payment policy can largely alleviate the formation of the income gap.Based on the results of empirical research,this paper provides policy recommendations to reduce the income gap between children in the high and low income families from characteristics difference and return difference.