A Study On The Impact Of Educational Financial Investment On Intergenerational Income Mobility Under The Background Of Common Prosperity

Common prosperity is an essential requirement of China’s socialism characteristics and a long-term historical process.Achieving common prosperity requires further improvement of intergenerational income mobility to achieve fair income distribution.Educational financial investment is an important factor affecting intergenerational income mobility.Based on this,this study focuses on the impact of educational financial investment in China on intergenerational income mobility.Based on the Public Goods Theory and Human Capital Theory,this study analyzes the mechanism through intergenerational mobility mathematical model,and put forward the research hypothesis accordingly.Secondly,the average annual income data of the children and their parents are obtained through the data of the Chinese Family Panel Survey(CFPS2010-2020),and the data of the children’s educational financial investment corresponding to the school year are obtained based on the Educational Funding Yearbook.Two parts of data are used for empirical testing and analysis.In the empirical test and analysis,this study takes the analysis of the change trend of China’s intergenerational income mobility,the change trend of the total scale of educational financial investment and the change trend of the structure of educational financial investment as the basis of the research.Using measurement methods such as Ordinary Least Squares Regression,Instrumental Variable Analysis and Generalized Ordered Logit to measure the impact of educational financial investment on intergenerational income mobility.Among them,the national-level education financial investment data are mainly used to verify the research hypothesis,and the provinciallevel data are used to verify the research hypothesis,conduct heterogeneity analysis of different regions and different income groups,and explore the direction of future educational financial investment system reform.Based on the above analysis,this study finds that increasing educational financial investment can significantly improve intergenerational income mobility in China,but its impact varies across regions and social groups.Specifically,for different regions,the growth of total educational financial investment has no significant impact on intergenerational income mobility in the western region.In terms of schooling stages,the growth of financial investment in compulsory education is a significant factor affecting the improvement of intergenerational income mobility in various regions,but the impact of financial investment in high school education on intergenerational income mobility in the western region is not significant.The impact of financial investment in higher education on intergenerational income mobility in all regions is not significant.For different income groups,the growth of total educational financial investment significantly improves the intergenerational income mobility of the children whose parents are non-relatively poor groups,but for the children whose parents are relatively poor groups,the effect is not significant.When it comes to the level of education,financial investment in compulsory education and high school education has a significant impact on the intergenerational income mobility of the children whose parents are relatively poor groups,but the impact of financial investment in higher education is not yet significant.The reason is that educational financial investment does not pay enough attention to the relatively disadvantaged groups,and the educational financial investment has failed to enable the children in the western region and the children whose parents are relatively poor groups to accumulate enough human capital and have the conditions for upward mobility.The public welfare still needs to be further reflected.The entry threshold of higher education is still high,and it has not played the role of improving intergenerational income mobility.Therefore,this study suggests that educational financial investment should shift from equity to adequacy under the background of common prosperity,and continue to expand the scale of investment,optimize investment structure,and establish a comprehensive evaluation mechanism.