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on China |
| By: | Gong, Cathy Honge (University of Canberra); Leigh, Andrew (Australian National University); Meng, Xin (Australian National University) |
| Abstract: | 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. Our preferred estimates are that the intergenerational income elasticities are 0.74 for father-son, 0.84 for father-daughter, 0.33 for mother-son, and 0.47 for mother-daughter. This suggests that while China has experienced rapid growth of absolute incomes, the relative position of children in the distribution is largely determined by their parents’ incomes. Investigating possible causal channels, we find that parental education, occupation, and Communist Party membership all play important roles in transmitting economic status from parents to children. |
| Keywords: | intergenerational mobility, transgenerational persistence, political party membership |
| JEL: | D10 D31 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4811&r=cna |
| By: | David Coady; Giovanni Callegari; Jaejoon Woo; Pietro Tommasino; Emanuele Baldacci; Manmohan S. Kumar |
| Abstract: | This paper shows that increasing government social expenditures can make a substantive contribution to increasing household consumption in China. The paper first undertakes an empirical study of the relationship between the savings rate and social expenditures for a panel of OECD countries and provides illustrative estimates of their implications for China. It then applies a generational accounting framework to Chinese household income survey data. This analysis suggests that a sustained 1 percent of GDP increase in public expenditures, distributed equally across education, health, and pensions, would result in a permanent increase the household consumption ratio of 1¼ percentage points of GDP. |
| Date: | 2010–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:10/69&r=cna |