Study On The Changes Of Intergenerational Transmission Of Income Gap,from The Perspective Of Department Segentation

Since the reform and opening up,China’s economy has developed rapidly for more than 30 years,and the level of per capita income has been continuously improved.But because of some institutional factors,there is income gap between the state-owned sectors and non state-owned sectors.The study of the intergenerational transmission of income gap is a study of the income gap from a dynamic perspective.Intergenerational income elasticity is the core index to measure the intergenerational transmission of income gap.It can directly reflect the social equality of opportunity and the dynamic change of income distribution.Accurately measure the degree of intergenerational transmission of income gap and explore its changing trend and transmission mechanism are the necessary conditions for understanding fair opportunity and making effective policy.In this paper,from the perspective of department segentation,using the data of urban residents in CHIPS and the method of double logarithmic model and quantile regression,we measure the intergenerational income elasticity and the quality of intergenerational income flow in botn sectors,and than analyze the change trend.Measurement of intergenerational income elasticity is only the beginning in the study of intergenerational transmission of income gap.Clear the transmission mechanism and open the "black box" behind the intergenerational transmission of income gap are the ultimate goal.So in this article,we ues Blanden decomposition method to decompose the intergenerational income elasticity,and discusse the role of wealth capital,human capital and social capital in the process of intergenerational transmission of income gap,then we make the comparative analysison on the transmission paths of state-owned and non-state-owned sectors.The empirical results show that:(1)On the whole,the intergenerational transmission rate of state-owned sectors is higher than that of the non state sectors,After the year of 2007,the intergenerational income elasticity of the two shows a slow rising trend.This phenomenon is on the alert.(2)The trend of intergenerational income elasticity of high income groups is declining,but on the contrary,the intergenerational income elasticitythe of the low income groups is showing a rising trend.The intergenerational transmission trend of the poor is becoming more and more serious.(3)Further analysis of the Shorrocks index shows that the flow quality of state-owned sectors is higher than the non state-owned sectors.And the flow quality of non state-owned sectors is deteriorating.(4)Wealth capital is the main channel of intergenerational transmission of urban residents’ income gap in China.The influence of human capital and social capital are relatively small.The explanation rate of wealth capital in non state-owned sectors is higher than that in state-owned sectors,while the explanation rate of human capital and social capital is lower than that of state-owned sectors.Based on the findings,this paper argues that,firstly the government should speed up the process of labor market in China,break the labor market segmentation,promote the rational flow of labor force,and improve the wage decision mechanism to reduce the wage differentials between the two sectors.Secondly,the government should continue to improve the public education system,allocate high-quality educational resources effectively,and set up a human capital investment mechanism that inclining to low-income groups to help low-income people get rid of the vicious circle of poverty.Finally,establishing and improving the social security system and public service system,and paying close attention to the living conditions of the relatively poor people in cities and towns,and implementing reasonable assistance to prevent them falling into the mire of absolute poverty.