Search Result

Srl

Item

ID: 136276

Decomposing the rich dad effect on income inequality using instrumental variable quantile regression / Du, Zaichao; Li, Renyu ; He, Qinying ; Zhang, Lin

Zhang, Lin	Article
	0 Rating(s) & 0 Review(s)

Summary/Abstract

In this paper we evaluate the relative importance of the two main channels, namely the composition effect and the income structure effect, through which the paternal income affects children's income inequality. Using data on 2677 pairs of father and children from China Health and Nutrition Survey (CHNS), we construct the counterfactual income of children from poor families if they had the same characteristics as children from rich families. We propose an instrumental variable quantile regression-based method to solve the endogeneity problem and decompose the rich dad effect on income inequality into the composition effect and the income structure effect. We find that the composition effect explains at least 80% of the income difference at any quantile, and it explains all the income difference at the top four deciles. Income structure effect has a significant impact only at quantiles between 20% and 40%, where it explains about 20% of the income difference

In Basket

Export

ID: 171892

Does Land Rent between Acquaintances Deviate from the Reference Point? Evidence from Rural China / Qiu, Tongwei; Luo, Biliang ; He, Qinying

He, Qinying	Journal Article
	0 Rating(s) & 0 Review(s)

Summary/Abstract

This paper theoretically and empirically investigates whether acquaintance networks influence the deviation of land rent from the reference point advanced by Hart and Moore. The coefficient of variance and the range of land rent are used to represent the degree of deviation from the reference point. Based on village‐level data from the 2015 China Household Finance Survey, the estimated results indicate that land rent between acquaintances is more likely to significantly deviate from the reference point. Although rental transactions are conducted between acquaintances, larger deviations from the reference are also associated with a longer time to close deals. Our analysis using household‐level data further supports our findings, indicating that land rental markets embedded in the acquaintance networks of rural China are in a transition period and have characteristics of both relational and market orientation. The policy makers should introduce more outer village lessees or other market ingredients to increase the voluntary marketization of land rentals inside acquaintance networks.

Key Words

Marketization ; Acquaintance Networks ; Land Rent ; Reference Point

In Basket

Export