Intergenerational Income Persistency in Urban China

44 Pages Posted: 20 Oct 2012

See all articles by Quheng Deng

Quheng Deng

Chinese Academy of Social Sciences (CASS)

Björn Gustafsson

University of Gothenburg - Department of Social Work; IZA Institute of Labor Economics

Li Shi

Chinese Academy of Social Sciences (CASS) - Institute of Economics; IZA Institute of Labor Economics

Date Written: October 20, 2012

Abstract

Intergenerational income elasticities are estimated using samples for urban China (covering many cities) for the years 1995 and 2002 and compared with results from other studies. We find that the income relation between the pairs: sons and fathers, sons and mothers and daughters and mothers, are in 2002 all similar in magnitude. In contrast the relation between daughters' and fathers' income is weaker. The income relationship between offspring and mothers was weaker in 1995 than in 2002. Our preferred estimates of income persistency for the son-father pairs of 0.47 for 1995 and 0.53 for 2002 are higher than what has been reported in the literature for several high-income countries with large welfare states. The strength of the income link between sons and fathers in urban China appears to be not very different from what has been reported for countries such as Brazil, Chile and the United States.

Keywords: intergenerational income mobility, China

JEL Classification: D31, J62, P32

Suggested Citation

Quheng, Deng and Gustafsson, Bjorn and Shi, Li, Intergenerational Income Persistency in Urban China (October 20, 2012). IZA Discussion Paper No. 6907, Available at SSRN: https://ssrn.com/abstract=2164636

Deng Quheng (Contact Author)

Chinese Academy of Social Sciences (CASS) ( email )

Beijing, 100732
China

Bjorn Gustafsson

University of Gothenburg - Department of Social Work ( email )

Göteborg
Sweden
+46 31-773-1890 (Phone)
+45 31-773-1888 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Li Shi

Chinese Academy of Social Sciences (CASS) - Institute of Economics ( email )

2 Yuetan Beixiaojie
Beijing
+86 1 068032473 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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