The Long-Term Impact of Household Wealth on Income Mobility

By using the China Health and Nutrition Survey data, this paper targets the generation who enter the labor market at the age of 18 to 35 and tries to study the long-term impact of their family health on income mobility as well as keep track of the tendency. Three conclusions can be drown from the research. Firstly, the impact is more significant in the second poor group and the middle-income group than that in the high-income group, and that of the low-income group is the worst. Secondly, in the long run, the impact shows a weakening trend, but the changing process is not the same. Thirdly, the significance of impact varies in different age groups. Compared with the groups aged 20 to 35 and 25 to 30, the impact is relatively remarkable for those who just enter the labor market aged 18 to 25.