Rising Intergenerational Income Persistence in China
- American Economic Journal: Economic Policy (Forthcoming)
This paper documents an increasing intergenerational income persistence in China since economic
reforms were introduced in 1979. The intergenerational income elasticity increases from 0.390 for
the 1970–1980 birth cohort to 0.442 for the 1981–1988 birth cohort; this increase is more evident
among urban and coastal residents than rural and inland residents. We also explore how changes
in intergenerational income persistence is correlated with market reforms, economic development,
and policy changes.