Research On The Impact Of Financial Education Expenditure On Intergenerational Income Mobility

Intergenerational income mobility is an important factor to measure the intergenerational transmission of income gaps,and it is also an important indicator to measure equal opportunities,and equal opportunity is also one of the important goals pursued by the government’s public policies.The intergenerational transmission of the income gap between fathers and offspring will lead to unequal opportunities between offspring,which may lead to further widening of the income gap between offspring,resulting in the emergence of the vicious circle,"the poor get poorer,the rich get richer".Therefore,the essence of the study of intergenerational transfer of income inequality is to seek a social reality of equal opportunities and economic justice.The report of the 19 th National Congress of the Communist Party of China mentioned that “strive to ensure every child can enjoy a fair and quality education”.At the 2015 Central Poverty Alleviation and Development Work Conference,President Xi Jinping pointed out“Supporting wisdom is the first step to solve the poverty.Education is a permanent solution to stop the intergenerational transmission of poverty." Educational equity is an important foundation of social equity,and it is also an important manifestation of equity of opportunity.In the above context,it is of great significance to explore the impact of fiscal education expenditure on the mobility of intergenerational income,and combine the actual situation of my country’s fiscal education expenditure to optimize fiscal education expenditure and promote fairness of opportunity for our country.First of all,on the basis of combing the relevant literature,this paper analyzes the current situation of our country’s fiscal education expenditure and intergenerational income mobility,using the "Statistical Yearbook of Educational Expenditures in China" and the data in the Wind database to estimate our country’s education expenditures.Using the CHNS micro-database to measure and describe our country’s intergenerational income mobility.Secondly,based on the theoretical model of Becker and Tomes(1979)which on the analysis of intergenerational income mobility under the framework of economics,this article starts from the two perspectives of reducing the difference in human capital investment by fiscal education expenditure and promoting the accumulation of human capital,describe the impact mechanism of international income mobility.Then,using CGSS and CHIP micro data,and the two-sample two-stage least squares method(TS2SLS)to have a empirical testing.The study found that although the total amount of fiscal education expenditure in our country has increased significantly,there are still some gaps compared with other typical countries in the world;the intergenerational income mobility in our country has shown a trend of increasing mobility as a whole,but the difference in inter-generational income mobility is prominent between urban and rural areas;among different regions,the difference between the central and western regions and the eastern region is relatively obvious.The empirical results show that fiscal education expenditure has a significant impact on inter-generational income mobility.Significantly positive effect,and the financial education expenditure at the junior high school stage can promote the mobility of intergenerational income more than the fiscal education expenditure at the primary school stage.The policy enlightenment of this article: First,my country needs to further increase fiscal education expenditure;secondly,the allocation of fiscal education expenditure needs to be further optimized,increasing the allocation ratio for areas with high intergenerational income mobility,and increasing the area’s the junior high school school level,Financial education expenditures promote the upward mobility of the descendants of residents in poor areas;finally,a more reasonable and effective financial education expenditure transfer payment system should be established to make the allocation of education resources more reasonable.