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INTERGENERATIONAL INCOME MOBILITY IN URBAN CHINA
Authors:HONGE GONG  ANDREW LEIGH  XIN MENG
Institution:1. University of Canberra;2. Australian National University
Abstract:This paper estimates the intergenerational income elasticity for urban China, paying careful attention to the potential biases induced by income fluctuations and life cycle effects. Our preferred estimate indicates that the intergenerational income elasticity for father–son is 0.63. This suggests that while China has experienced rapid growth of absolute incomes, the relative position of children in the distribution is largely related to their parents' incomes. By investigating possible causal channels, we find that parental education plays one of the most important roles in transmitting economic status from parents to children.
Keywords:D10  D31  intergenerational mobility  political party membership  transgenerational persistence
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