Note: A first draft of this paper was presented at the 28th General Conference of the International Association for Research in Income and Wealth, Cork, Ireland and we wish to thank Miles Corak for comments on that version. A previous version of the paper was presented at the 26th ESPE Conference in Bern, Switzerland. We thank referees to this journal for constructive comments. Quheng Deng is grateful to the Innovation Project of the Chinese Academy of Social Sciences and the Ontario Research Fund. The work was supported by grants from the Swedish Research Council and the Swedish International Development Cooperation Agency (Sida): Swedish Research Links and the project of Integration of Urban and Rural Labour Market in China (70933001), supported by the China Foundation of Natural Sciences. Authors are listed alphabetically by family name.
Intergenerational Income Persistence in Urban China
Article first published online: 18 APR 2013
© 2013 International Association for Research in Income and Wealth
Review of Income and Wealth
Volume 59, Issue 3, pages 416–436, September 2013
How to Cite
Deng, Q., Gustafsson, B. and Li, S. (2013), Intergenerational Income Persistence in Urban China. Review of Income and Wealth, 59: 416–436. doi: 10.1111/roiw.12034
- Issue published online: 4 AUG 2013
- Article first published online: 18 APR 2013
- Swedish Research Council
- Swedish International Development Cooperation Agency (Sida)
- China Foundation of Natural Sciences
- intergenerational income mobility
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 persistence for the son/father pairs of 0.47 for 1995 and 0.53 for 2002 are higher than those which have 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 U.S.