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The Role of Family Background for Earnings in Rural China

Research output: Working paperResearch


  • Wp 10-14

    Final published version, 218 KB, PDF document

  • Department of Economics
  • Center for Corporate Performance (CCP)
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. We show that compared with 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.
Original languageEnglish
Place of publicationAarhus
PublisherAarhus School of Business, Aarhus University, Department of Economics
Number of pages18
ISBN (Print)9788778824653
ISBN (Electronic)9788778824660
Publication statusPublished - 2010

    Research areas

  • Family background, Sibling correlation, Income inequality

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