Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36171
Authors: 
Honge Gong, Cathy
Leigh, Andrew
Meng, Xin
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers 4811
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 estimates are that the intergenerational income elasticities are 0.74 for father-son, 0.84 for father-daughter, 0.33 for mother-son, and 0.47 for mother-daughter. This suggests that while China has experienced rapid growth of absolute incomes, the relative position of children in the distribution is largely determined by their parents' incomes. Investigating possible causal channels, we find that parental education, occupation, and Communist Party membership all play important roles in transmitting economic status from parents to children.
Subjects: 
Intergenerational mobility
transgenerational persistence
political party membership
JEL: 
D10
D31
Document Type: 
Working Paper

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