The effects of education upward mobility on income upward mobility: evidence from China

Figures & data

Figure 1. Average annual income of parents and children in general.

Source: drawn by author.

Figure 2. Average annual years of schooling of parents and children in general.

Source: drawn by author.

Figure 3. Average annual income of parents and children in urban areas.

Source: drawn by author.

Figure 4. Average annual years of schooling of parents and children in urban areas.

Source: drawn by author.

Figure 5. Average annual income of parents and children in rural areas.

Source: drawn by author.

Figure 6. Average annual years of schooling of parents and children in rural areas.

Source: drawn by author.

Table 1. Summary statistics.

Variables	Obs.	Mean	Std. Dev.	Min.	Max.
Panel A: Total
${\mathit{INCOME}}^P$	4,032	8,272.01	13,851.87	50	78,000
${\mathit{INCOME}}^C$	4,032	10,459.91	16,880.18	111	92,000
$\mathit{IUM}$	4,032	2,187.91	13,535.53	−74,550	91,400
${\mathit{EDU}}^P$	4,032	4.95	4.54	0	16
${\mathit{EDU}}^C$	4,032	9.02	4.22	0	16
$\mathit{EUM}$	4,032	4.06	4.81	−16	16
${\mathit{AGE}}^P$	4,032	56.06	4.95	43	65
${\mathit{AGE}}^C$	4,032	28.92	3.92	25	45
${\mathit{GENDER}}^C$	4,032	0.79	0.40	0	1
${\mathit{UNIT}}^P$	4,032	0.31	0.46	0	1
${\mathit{CADRE}}^P$	4,032	0.07	0.25	0	1
$\mathit{SOCIAL}$	4,032	0.05	0.22	0	1
$\mathit{IPD}$	4,032	2.33	1.12	1	4
Panel B: Urban
${\mathit{INCOME}}^P$	1,237	10,279.67	16,789.80	50	78,000
${\mathit{INCOME}}^C$	1,237	10,829.77	18,639.96	120	92,000
$\mathit{IUM}$	1,237	550.10	13,185.07	−67,000	91,400
${\mathit{EDU}}^P$	1,237	6.46	5.13	0	15
${\mathit{EDU}}^C$	1,237	10.05	4.92	0	16
$\mathit{EUM}$	1,237	3.59	5.62	−15	16
${\mathit{AGE}}^P$	1,237	56.69	4.79	44	65
${\mathit{AGE}}^C$	1,237	28.69	3.73	25	43
${\mathit{GENDER}}^C$	1,237	0.73	0.44	0	1
${\mathit{UNIT}}^P$	1,237	0.76	0.43	0	1
${\mathit{CADRE}}^P$	1,237	0.13	0.34	0	1
$\mathit{SOCIAL}$	1,237	0.11	0.32	0	1
$\mathit{IPD}$	1,237	2.54	1.12	1	4
Panel C: Rural
${\mathit{INCOME}}^P$	2,795	7,383.46	12,228.84	50	78,000
${\mathit{INCOME}}^C$	2,795	10,296.22	16,040.67	111	92,000
$\mathit{IUM}$	2,795	2,912.76	13,627.38	−74,550	88,840
${\mathit{EDU}}^P$	2,795	4.27	4.06	0	15
${\mathit{EDU}}^C$	2,795	8.56	3.78	0	16
$\mathit{EUM}$	2,795	4.29	4.37	−15	16
${\mathit{AGE}}^P$	2,795	55.79	4.99	43	65
${\mathit{AGE}}^C$	2,795	29.02	3.99	25	45
${\mathit{GENDER}}^C$	2,795	0.82	0.38	0	1
${\mathit{UNIT}}^P$	2,795	0.12	0.32	0	1
${\mathit{CADRE}}^P$	2,795	0.04	0.20	0	1
$\mathit{SOCIAL}$	2,795	0.03	0.16	0	1
$\mathit{IPD}$	2,795	2.24	1.10	1	4

Note: Obs., Mean, Std. Dev., Min., and Max. denote observed value, mean value, standard deviation, minimum value, and maximum value, respectively. ${\mathrm{INCOME}}^{\mathrm{P}},$$\mathrm{ }{\mathrm{INCOME}}^{\mathrm{C}},$ $\mathrm{IUM},$$\mathrm{ }{\mathrm{EDU}}^{\mathrm{P}},$ ${\mathrm{EDU}}^{\mathrm{C}},$ $\mathrm{EUM}$ denote parents’ income, children’s income, income upward mobility, parents’ years of schooling, children’s years of schooling, and education upward mobility, respectively. ${\mathrm{AGE}}^{\mathrm{P}}$ and ${\mathrm{AGE}}^{\mathrm{C}}$ denote the age of parents and children, respectively. ${\mathrm{GENDER}}^{\mathrm{C}}\mathrm{ }$denotes the gender of children. ${\mathrm{UNIT}}^{\mathrm{P}}$ is a dummy variable that is equal to 1 if parents work in a government agency, state-owned enterprise, or public institution, 0 otherwise. ${\mathrm{CADRE}}^{\mathrm{P}}$ is a dummy variable that is equal to 1 if parents are cadres, 0 otherwise. $\mathrm{SOCIAL}$ denotes the social capital of parents, and is a dummy variable that is equal to 1 if parents work in a government agency, state-owned enterprise, and public institution, and are also cadres, 0 otherwise. $\mathrm{IPD}$ denotes intergenerational psychological distance, comprising four levels (increasing from level 1 to 4).

Source: summarized by author.

Table 2. Effect of education upward mobility (EUM) on income upward mobility (IUM).

Variable	Total	Urban	Rural
	(1)	(2)	(3)
$\mathit{EUM}$	0.087***	0.086***	0.071***
	(0.016)	(0.026)	(0.019)
Constants	−0.374	2.359	−1.152
	(1.764)	(3.785)	(2.068)
Control_X	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes
Regional dummies	Yes	Yes	Yes
Observations	4,032	1,237	2,795
R^2	0.079	0.051	0.115

Note: The dependent variable is income upward mobility.

Control_X is a set of control variables (parents’ income, children’s age and quadratic, and parents’ age and quadratic).

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 3. Influence of intergenerational psychological distance (IPD).

Variable	Total	Urban	Rural
	(1)	(2)	(3)
EUM × IPD1	0.130***	0.134***	0.106***
	(0.028)	(0.048)	(0.035)
EUM × IPD2	0.114***	0.137**	0.071*
	(0.035)	(0.060)	(0.041)
EUM × IPD3	0.065**	0.065**	0.059
	(0.026)	(0.033)	(0.039)
EUM × IPD4	0.007	−0.010	0.017
	(0.027)	(0.041)	(0.035)
IPD2	−0.108*	−0.142	−0.078
	(0.059)	(0.122)	(0.068)
IPD3	−0.074	−0.064	−0.072
	(0.075)	(0.153)	(0.085)
IPD4	−0.123	−0.140	−0.101
	(0.117)	(0.217)	(0.134)
Constants	−1.076	1.818	−1.788
	(2.017)	(4.555)	(2.347)
Control_X	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes
Regional dummies	Yes	Yes	Yes
Observations	4,032	1,237	2,795
R^2	0.082	0.059	0.116

Note: The dependent variable is income upward mobility; EUM denotes education upward mobility.

IPD1, IPD2, IPD3, and IPD4 denote four levels of IPD.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, and parents’ age and quadratic.

Robust standard errors are in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 4. Influence of parents’ social capital.

Variable	Total	Urban	Rural
	(1)	(2)	(3)
EUM × SOCIAL0	0.045***	0.033	0.060***
	(0.013)	(0.022)	(0.016)
EUM × SOCIAL1	0.063*	0.101***	−0.020
	(0.038)	(0.040)	(0.065)
SOCIAL1	0.085*	0.010	0.167*
	(0.050)	(0.052)	(0.101)
Constants	0.160	3.024	−1.137
	(1.381)	(2.862)	(1.636)
Control_X	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes
Regional dummies	Yes	Yes	Yes
Observations	4,032	1,237	2,795
R^2	0.401	0.390	0.421

Note: The dependent variable is income upward mobility; EUM denotes education upward mobility.

$\mathit{SOCIAL}$ is a dummy variable that is equal to 1 if parents work in a government agency, state-owned enterprise, or public institution, and are also cadres, and 0 otherwise.

Control_X is set of control variables, such as parents’ income, children’s age and quadratic, parents’ age and quadratic, and parents’ income.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 5. Analysis of gender heterogeneity via basic regression.

Variable	Total		Urban		Rural
	Son	Daughter	Son	Daughter	Son	Daughter
	(1)	(2)	(3)	(4)	(5)	(6)
EUM	0.089***	0.081**	0.079***	0.120**	0.088***	0.032
	(0.017)	(0.034)	(0.025)	(0.052)	(0.022)	(0.042)
Constants	−0.399	−0.591	−2.431	14.175	−0.041	−7.180*
	(1.817)	(4.636)	(3.236)	(10.339)	(2.244)	(3.986)
Control_X	Yes	Yes	Yes	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes	Yes	Yes	Yes
Observations	3,200	832	904	333	2,296	499
R^2	0.081	0.071	0.034	0.082	0.115	0.108

Note: The dependent variable is income upward mobility; EUM denotes education upward mobility.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, and parents’ age and quadratic.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 6. Analysis of gender heterogeneity of influence of intergenerational psychological distance (IPD).

Variable	Total		Urban		Rural
	Son	Daughter	Son	Daughter	Son	Daughter
	(1)	(2)	(3)	(4)	(5)	(6)
EUM × IPD1	0.143***	0.084*	0.139**	0.260**	0.135***	−0.008
	(0.033)	(0.049)	(0.056)	(0.115)	(0.041)	(0.056)
EUM × IPD2	0.103***	0.146*	0.111**	0.220	0.084*	0.084
	(0.034)	(0.084)	(0.048)	(0.151)	(0.048)	(0.081)
EUM × IPD3	0.075**	0.062	0.052	0.092	0.085**	−0.007
	(0.030)	(0.052)	(0.042)	(0.058)	(0.039)	(0.125)
EUM × IPD4	−0.001	−0.011	−0.009	−0.060	0.013	0.034
	(0.033)	(0.041)	(0.054)	(0.052)	(0.043)	(0.065)
IPD2	−0.036	−0.301**	−0.114	−0.147	−0.001	−0.365**
	(0.066)	(0.137)	(0.136)	(0.291)	(0.076)	(0.145)
IPD3	−0.047	−0.077	−0.136	0.258	−0.013	−0.280
	(0.084)	(0.195)	(0.162)	(0.401)	(0.097)	(0.214)
IPD4	−0.036	−0.362	−0.175	−0.082	0.013	−0.501*
	(0.133)	(0.263)	(0.234)	(0.510)	(0.155)	(0.291)
Constants	−0.732	−1.594	−3.495	20.839	−0.053	−11.531**
	(2.028)	(6.230)	(3.834)	(13.018)	(2.489)	(5.222)
Control_X	Yes	Yes	Yes	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes	Yes	Yes	Yes
Observations	3,200	832	904	333	2,296	499
R^2	0.083	0.089	0.039	0.125	0.116	0.123

Note: The dependent variable is income upward mobility; EUM denotes education upward mobility.

IPD1, IPD 2, IPD3, and IPD 4 denote four levels of IPD.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, and parents’ age and quadratic.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 7. Analysis of effect of gender heterogeneity on the influence of parents’ social capital.

Variable	Total		Urban		Rural
	Son	Daughter	Son	Daughter	Son	Daughter
	(1)	(2)	(3)	(4)	(5)	(6)
EUM × SOCIAL0	0.066***	0.033	0.033	0.075	0.088***	0.038
	(0.015)	(0.029)	(0.022)	(0.052)	(0.019)	(0.028)
EUM × SOCIAL1	0.062	0.045	0.130**	0.054	−0.045	−0.026
	(0.060)	(0.049)	(0.058)	(0.071)	(0.098)	(0.073)
SOCIAL1	0.117**	−0.001	0.024	−0.171	0.238*	0.095
	(0.059)	(0.132)	(0.061)	(0.203)	(0.136)	(0.199)
Constants	−1.479	−0.289	−3.981	13.203	−1.204	−5.577*
	(1.418)	(4.107)	(2.562)	(8.837)	(1.790)	(2.859)
Control_X	Yes	Yes	Yes	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes	Yes	Yes	Yes
Observations	3,200	832	904	333	2,296	499
R^2	0.373	0.340	0.407	0.265	0.380	0.513

Note: The dependent variable is income upward mobility; EUM denotes education upward mobility.

$\mathit{SOCIAL}$ is a dummy variable that is equal to 1 if parents work in a government agency, state-owned enterprise, or public institution, and are also cadres, and 0 otherwise.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, parents’ age and quadratic, and parents’ income.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 8. Robustness check using alternative measurements.

Variable	Total	Urban	Rural
	(1)	(2)	(3)
EDU	1.666***	1.840***	1.512***
	(0.127)	(0.264)	(0.142)
Log-likelihood	−2,681.83	−776.36	−1,847.20
Control_X	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes
Regional dummies	Yes	Yes	Yes
Observations	4,032	1,237	2,795
Pseudo R^2	0.038	0.087	0.035

Note: The dependent variable is income upward mobility, and the independent variable is education upward mobility. Both are dummy variables that equal 1 if children surpass their parents’ income and education, and 0 otherwise.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, and parents’ age and quadratic.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 9. Robustness check using an instrumental variable.

Variable	Total	Urban	Rural
	(1)	(2)	(3)
CPL	0.520**	0.514*	0.771***
	(0.220)	(0.281)	(0.261)
Constants	−0.767	4.236	−2.604
	(1.903)	(4.231)	(2.499)
Control_X	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes
Regional dummies	Yes	Yes	Yes
Observations	4,032	1,237	2,795

Note: The dependent variable is income upward mobility.

CPL is a dummy variable that is equal to 1 if children are born after the Compulsory Education Law was enacted in China and do not go to college, and 0 otherwise.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, and parents’ age and quadratic.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.

Table 10. Robustness check on subsample: influence of college expansion policy.

Variable	Total	Urban	Rural
	(1)	(2)	(3)
EUM	0.197***	0.309***	0.124**
	(0.046)	(0.106)	(0.049)
Constants	−5.712	−0.876	−8.038
	(5.448)	(14.611)	(5.901)
Control_X	Yes	Yes	Yes
Year dummies	Yes	Yes	Yes
Regional dummies	Yes	Yes	Yes
Observations	1,472	325	1,147
R^2	0.071	0.110	0.100

Note: The dependent variable is income upward mobility; EUM denotes education upward mobility.

Control_X is a set of control variables, such as parents’ income, children’s age and quadratic, and parents’ age and quadratic.

Robust standard errors are given in brackets, where *p < 0.1, **p < 0.05, and ***p < 0.01.

Source: estimated by author.