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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2012, Vol. 7 Issue (3) : 465-477    https://doi.org/10.3868/s060-001-012-0020-6
research-article |
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.

Keywords family background      sibling correlation      income inequality     
Corresponding Authors: Tor Eriksson,Email:tor@asb.dk   
Issue Date: 05 September 2012
 Cite this article:   
Tor Eriksson,Yingqiang Zhang. The Role of Family Background for Earnings in Rural China[J]. Front Econ Chin, 2012, 7(3): 465-477.
 URL:  
http://academic.hep.com.cn/fec/EN/10.3868/s060-001-012-0020-6
http://academic.hep.com.cn/fec/EN/Y2012/V7/I3/465
[1] Matthieu Clément. Income Mobility and Income Inequality in Rural China[J]. Front. Econ. China, 2016, 11(4): 608-634.
[2] Chunjin Chen,Shi Li. Market Transition and Income Inequality in Urban China: Evidence from Shapley Value Decomposition[J]. Front. Econ. China, 2014, 9(2): 309-337.
[3] Xiuyan Liu , Xingmin Yin , . Spatial Externalities and Regional Income Inequality: Evidence from China’s Prefecture- Level Data[J]. Front. Econ. China, 2010, 5(2): 325-338.
[4] ZHOU Yunbo, . The factors that impact income inequality of rural residents in China: Decomposing the Gini coefficient from income components[J]. Front. Econ. China, 2009, 4(4): 617-632.
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