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Submitted by Yan Sun on
Thank you very much for your comment.  While the gap between rich and poor is widening, we try to identify what are the underlying causes? Is it because unequal opportunity to access better jobs in urban cities? Or is it because unequal opportunity to access to better education? We find that an improvement in intergenerational occupational mobility, a farmer’s child is no longer to be a farmer. But we also find significant intergenerational persistence in education attainment. In other word, parents’ education status influences children’s education attainment (e.g., children with less educated parents have lower education level, this inequality in educational opportunity will finally lead to inequality in income). The paper provides rigorous analysis and explanations for the divergent trend as well as policy implication. But the goal of the paper is not to solve the puzzle. Intergenerational mobility is one measure to estimate the degree of inequality, of course you could have other ways.