On Intergenerational Income Mobility in the View of Rural Government Spending

Based on the CHNS data set which has the multilevel construction,the paper emphatically analyze the influence of the regional government spending on the intergenerational correlation of incomes using two-level Statistical Models in nine provinces or regions of rural China. The results indicate, after controlling individual characteristic variables, the Intergenerational Income Mobility in Rural China is influenced by the government spending. The results also find that the intergenerational correlation is strong, which means the Intergenerational Income Mobility is weak. At last, certain measures have been proposed that the government should increase spending, optimizing the spending construction simultaneously, in order to provide more opportunities for children.