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Intergenerational Mobility of Earnings in China
1Anhui University of Finance and Economics.
Abstract:
Due to dataset limitations, existing studies on China's intergenerational income mobility are unreliable. Using longitudinal data from the Chinese Health and Nutrition Survey, this study applied a modified version of the Zimmerman [Zimmerman DJ (1992) Regression toward mediocrity in economic stature. Am Econ Rev 82(3):409-429] model and estimated intergenerational earnings mobility based on a complete model with covariance restrictions. The new estimate demonstrates that intergenerational earnings elasticity in China is 0.54, a rather higher level relative to most developed countries.
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