Decomposing the Social Mobility in China: From 1989 to 2015

    Proceedings of The 2nd International Conference on Advanced Research in Business, Management and Economics

    Year: 2019

    DOI:

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    Decomposing the Social Mobility in China: From 1989 to 2015

    Kaiyi Wen

     

    ABSTRACT: 

    This research focuses on the changes of social mobility and its driving factors in China from 1989 to 2015. I use the China Health and Nutrition Survey (CHNS) panel data which tracks the individuals across survey years so that I can observe and analyze the social mobility changes at the individual-level across years. I find decreasing social mobility in China from 1989 to 2006 and it fluctuates after that. I also find the industry factor plays more significant roles in the changes of social mobility in China as time progresses toward the present. This is mainly due to more people working in the first industry transferring to the second or the third industry. Although more people transfer to the industries with higher income premiums, the general social mobility in China is decreasing. One possible explanation to the contradiction may be the increasing income premiums across industries. I also use the JMP Decomposition to quantify and corroborate my results.

    Keywords: China; Decomposition; Industry; Inequality; Social Mobility.