A Nation of Two Tales: The Dual Intergenerational Economic Transmission in Rural and Urban China

Xuechao Qian ()
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Xuechao Qian: Ball State University

Population Research and Policy Review, 2025, vol. 44, issue 3, No 5, 38 pages

Abstract: Abstract The novelty of this paper lies in its comparative study of intergenerational economic mobility in rural and urban China, exploring multiple mechanisms of intergenerational transmission. This paper finds that intergenerational economic mobility has been lower in urban areas than in rural areas in China over the past quarter-century (1989 to 2015). Furthermore, using predicted community time-invariant indexes for parental human and non-human capital measures as instruments, I demonstrate that parental educational attainment has a relatively greater impact on child income in rural China, whereas parental non-human capital, such as social gift expenses, has a more substantial effect on child income in urban households. This paper highlights the heterogeneous intergenerational economic transmission patterns in China’s dual society under the Rural-Urban Household Registration System. Moreover, the existing rural-urban difference in intergenerational economic transmission does not diminish with internal labor migration.

Keywords: Household production; Intergenerational transmission; Rural and urban; D13; J62; P25; R23 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11113-025-09945-3

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