Income Mobility In China
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We apply our framework and the theoretical results to the chinese society by investigating its income mobility for the period between 1989 and 2011.
Income mobility in china. 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. Nee 1996 analysed the income mobility of rural residents in china and declared that the high degree of mobility was driven by the reform introducing marketization and institutional change. We find an increasing pattern in intergenerational income persistence across china s transitional period. Although studies on economic inequality and intergenerational mobility have gained traction in the last decade little is known about the temporal changes in the intergenerational association of economic status especially in developing and transitional economies.
According to the study children born into low income households in the 1970s had a better chance of rising. We find that rates of absolute mobility have fallen from approximately 90 for children born in 1940 to 50 for child. Khor and pencavel 2006 noted that the degree of income mobility in urban china was higher than that in the us and other developed countries from 1990 to. The evidence on rank and income mobility in china reveals an important change around the year 2000.
Our preferred estimate indicates that the intergenerational income elasticity for father son is 0 63. We find an increasing trend in income mobility in 1990s and a drop in the middle and the late of 2000s. We investigated the regional income mobility in china for the year 1994 2016. Using panel data from the china health and nutrition survey we show that rank mobility fell.
Not only is china s economic mobility low but it seems it seems to be getting worse. Using the data collected from 185 prefecture level cities we find evidence that the regional income mobility was increasing over past two decades. Raj chetty professor of economics at stanford university asked about social mobility in the usa and his findings are sobering.
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