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Causal Mechanisms in the Intergenerational Transmission of Income in China

Lecturer:Jack W. Hou




Room S201 (second floor), West attached building of Education MuseumChang'an Campus

About the Lecture:

Intergenerational income elasticity (IIE) is often used to measure intergenerational income mobility, but it tell us little regarding the determinants behind the intergenerational income correlation. Accurate understanding of the intergenerational transmission of income is important for policies aimed at improving social equality. In this paper, we use current income data from the 2010 China Family Panel Studies (CFPS), studying the causal effect of father’s income and human capital on the intergenerational transmission of income between fathers and sons. We find that the majority of the intergenerational income elasticity can be attributed to the causal effect of father’s financial resources. Moreover, we provide a lower bound of the elasticity, which is 0.339, with the true value is estimated to be closer to 0.6. The result suggests that public policies aim at narrowing current income gap will have a long lasting effect as it is conducive to increasing intergenerational income mobility in China. This is the MOST technical presentation of all the topics listed here.

Profile of the Lecturer:

Education: B.A., National Taiwan University, 1979

Ph.D, Yale University, 1989.

Teaching Experience:

Professor (California Stata University-Long Beach), 1998-

Adjunct Chair Professor (School of Economics, Jinan University, Guangzhou, China)

Distinguished Professor (School of Economics, Southwestern University of Finance and Economics, Chengdu, China), 2012-

University Fellow (Nankai University, Tianjin, China), 2008-

Dr. Deng-hwei Lee Academic Chair Professor (National Sun-Yat Sen University, Taiwan), 2006

Visiting Associate Professor (UCLA), 1999-2011

Visiting Assistant Professor (Purdue University), 1988-1989

Research Experience:

Research Professor, Chinese Institute of Industrial Economics (Taiwan), 1997-

Scholar Fellow, Institute of Teaching & Learning, 1993-1994

Other Scholarly Activity:

Associate Editor, Economic Modeling, 2018-

Specialized Co-editor of Contemporary Economic Policy (Western Economic Association), 2014-

Associate Editor, Journal of Risk and Financial Management (JRFM), 2012-

President of the Western Social Science Association (WSSA), 2009-2010

President of the CES, 2007-2008

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