Rising Intergenerational Income Persistence in China

This study attempts to provide the first systematical analysis of the temporal patterns of crosssectional inequality and intergenerational mobility amid China’s economic transition and growth. First, we estimate the declining pattern of intergenerational mobility in income and education with respect to cohort. The declining pattern is more significant for females and residents in economically disadvantaged regions. Second, we correlate intergenerational mobility with cross-sectional inequality and find a Great Gatsby Curve with a negative slope in China. Finally, we discuss the institutional and policy factors behind the findings.