| ID | 182764 |
| Title Proper | Inequality of opportunity in China |
| Other Title Information | evidence from pseudo panel data |
| Language | ENG |
| Author | Li, Jing ; Dai, Xinchen |
| Summary / Abstract (Note) | We construct a pseudo panel sample from the China General Social Survey to study the inequality of opportunity in China. The pseudo panel enables us to control for cohort-specific heterogeneities when estimating the Mincer equation, and the results show that individual circumstances play a prominent role in determining income advantage. Counterfactual analysis further reveals the importance of cohort-level circumstances: individual circumstances account for less than 10% of the observed income inequality, whereas equalizing both the individual circumstances and the cohort fixed effects reduces income inequality by 30%. Among the individual circumstances we examine, gender and paternal characteristics contribute more to income inequality than does hukou of birth. Subsample analysis shows that China's western provinces exhibit the highest inequality of opportunity and that the inequality of opportunity among younger cohorts is smaller than that among older cohorts. |
| `In' analytical Note | China Economic Review Vol. 68, Aug 2021: p.101637 |
| Journal Source | China Economic Review 2021-07 68, 68 |
| Key Words | China ; Inequality of Opportunity ; Circumstances ; Effort ; Pseudo Panel |