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https://doi.org/10.1017/CBO9780511492549.007

has been cited by the following article:

• TITLE: The Effect of Trade Liberalization on Intergenerational Income Mobility

  AUTHORS: Guo’e Xie, Xinmiao Zhang

  KEYWORDS: Trade Liberalization, Income Inequality, Intergenerational Income Mobility

  JOURNAL NAME: Open Journal of Business and Management, Vol.10 No.4, July 25, 2022

  ABSTRACT: The recent backlash against globalization, including the Sino-US trade war and Brexit, has highlighted the discussion on the effect of trade on economic inequality. This paper employs a probit model to investigate the effect of trade liberalization on intergenerational income mobility based on micro-level data from China Health and Nutrition Survey and macro-level data from Regional Statistic Yearbooks in 1989-2015. Most notably, we study how industrialization and upward education mobility explain the underlying mechanisms of such effect. The results indicate that a high level of trade openness may promote upward income mobility for both sons and daughters and restrain downward income mobility for daughters. Therefore, China should keep up its process of reform and opening up, further eliminating trade barriers and strengthening international cooperation to provide equal opportunities of high-skilled occupations for individuals from different family backgrounds. Chinese families should be encouraged to provide equal educational opportunities for boys and girls.