The Role of Family Background for Earnings in Rural China

Tor Viking Eriksson; Zhang Ying Qiang

The Role of Family Background for Earnings in Rural China

Tor Viking Eriksson
, Zhang Ying Qiang

Research output: Working paper/Preprint › Working paper › Research

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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. 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 language	English
Place of publication	Aarhus
Publisher	Aarhus School of Business
Number of pages	18
ISBN (Print)	9788778824653
ISBN (Electronic)	9788778824660
Publication status	Published - 2010

Keywords

Family background
Sibling correlation
Income inequality

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AU - Qiang, Zhang Ying

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N2 - 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.

AB - 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.

KW - Family background

KW - Sibling correlation

KW - Income inequality

M3 - Working paper

SN - 9788778824653

BT - The Role of Family Background for Earnings in Rural China

PB - Aarhus School of Business

CY - Aarhus

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The Role of Family Background for Earnings in Rural China

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