Why Free Labor Migration is So Important? ——Based on the Perspective of Intergenerational Income Mobility
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| Title | Why Free Labor Migration is So Important? ——Based on the Perspective of Intergenerational Income Mobility
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| Author | Sun Sanbai, Huang Wei and Hong Junjie |
| Organization | School of International Trade and Economics, University of International Business and Economics;School of Insurance and Economics, University of International Business and Economics |
| Email | sunsanbai@gmail.com,MirandeHuang@yahoo.com.cn,hongjunjie@uibe.edu.cn |
| Key Words | Intergenerational Income Mobility; Migration; Average Treatment Effect |
| Abstract | The estimation of intergenerational income elasticity will be inaccurate without considering labor migration. Base on the method of average treatment effect, using local instrumental variable, this paper incorporates labor migration and regional traits when we estimate the intergenerational income elasticity. The results suggest that intergenerational income elasticity of migrants is only half of those that stay. The key problem of intergenerational income mobility in China is that some people were trapped by the low income kind of intergenerational transmission, which can be weakened through migration. We also attempt to identify the possible influence of path, and find that educational factor plays an important role in determining the intergenerational income elasticity. Migration enforces this influence. Thus, the government should further release the restrictions over labor migration and allocate educational resources appropriately, in order to increase intergenerational income mobility and achieve social equity. |
| Serial Number | WP259 |
| Time | 2012-06-12 |
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