Due to dataset limitations, existing studies on China's intergenerational income mobility are unreliable. Using longitudinal data from the Chinese Health and Nutrition Survey, this study applied a modified version of the Zimmerman [Zimmerman DJ (1992) Regression toward mediocrity in economic stature. Am Econ Rev 82(3):409-429] model and estimated intergenerational earnings mobility based on a complete model with covariance restrictions. The new estimate demonstrates that intergenerational earnings elasticity in China is 0.54, a rather higher level relative to most developed countries.
Keywords: C81; D31; Earnings Dynamics; Inequality of Opportunity; Intergenerational Earnings Mobility; J62; Minimum Distance Estimation.