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The Role of Family Background for Earnings in Rural China |
Tor Eriksson1(), Yingqiang Zhang2 |
1. Department of Economics and Business, Aarhus University, 8230 Aabyhoej, Denmark; 2. School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China |
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Abstract This paper provides estimates of brother income correlations for rural China. Brother correlations are a parsimonious measure of the importance of family and community background as determinants of individuals’ economic status. We find internationally high levels of income similarity for brothers and siblings: 0.57 and 0.58, respectively. Compared to the 1990s, income correlations have decreased in more recent years, but remain high. Furthermore, we document virtually no differences between the coastal and interior provinces and by father’s education. The high brother correlations imply that the high level of income inequality in China is likely to persist.
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Keywords
family background
sibling correlation
income inequality
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Corresponding Author(s):
Tor Eriksson,Email:tor@asb.dk
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Issue Date: 05 September 2012
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