Research On The Intergenerational Flow Coefficient Of Income Between Father And Son

With the continuous development of social economy,the balance and equality of development are becoming more and more important in the pursuit of total economic indicators.In particular,it was pointed out in the report of the 19 th National Congress of the Communist Party of China that major social contradictions in China have also undergone major changes,that is,from the past "the contradiction between the people’s growing material and cultural needs and backward social production" to "the contradiction between the people’s growing needs for a better life and the uneven and inadequate development".In the study of the balance of economic and social development,intergenerational mobility is an indispensable part,because in the long run,the reduction of intergenerational mobility will lead to the more serious horizontal income inequality and the higher Gini coefficient in a society.This paper mainly uses the data of China family panel studies(CFPS)2010,2012,2014,2016 and 2018 provided by the China Social Sciences Research Center(ISSs)of Peking University to study the intergenerational mobility.This paper mainly studies from the following three aspects:The first is to describe the overall structure of the data,according to which the urban and rural population distribution,gender distribution,education level distribution and other factors closely related to national life are classified,analyzed and descriptive statistics;and based on this,the basic situation of urban and rural residents in China is described.Secondly,based on Solon’s age modified intergenerational mobility model,the intergenerational mobility coefficient of income between parents and children is calculated.The influence of urban and rural household registration variables and migration variables,parents’ and children’s education variables and education promotion on the intergenerational flow coefficient of income between parents and children was studied.At last,the estimation coefficient is biased down due to the use of single-year parent income to replace the long-term average income of the parent.Based on the single-year intergenerational flow coefficient,two improved methods are proposed:multi-year average method and instrumental variable method.On the basis of the down bias estimation of multi-year average and the upbias estimation of instrumental variable method,the interval containing the true value consistent estimation of intergenerational flow coefficient is obtained.The current intergenerational flow coefficient of income in China is estimated to be over 0.468.Finally,the previous research results are summarized,conclusions are drawn and suggestions are put forward.