Heterogeneity in the intergenerational transmission of education and second generation rural-urban migrants

Two facts are widely recognized regarding urban China: the population of rural-urban migrants is dramatically increasing with China's rapid growth, and urban disparity is being caused by the hukou system. This paper derives an intergenerational transmission function that can theoretically explain how the hukou system can give rise to different patterns for the intergenerational transmissionre of human capital from urban residents and rural-urban migrants to their children. Further, it empirically examines the existence of heterogeneity using multiple Chinese household datasets and different subsamples. Compared to urban residents, we find lower marginal positive effects of migrated parental educational attainment on children's schooling outcomes. The heterogeneity can only partially be explained by the observed socioeconomic characteristics. Although the hukou system plays an adverse role, evidence suggests that there is potential upward mobility for migrants, as staying longer with parents in an urban area improves the migrated children's school performance. This comparative study elucidates policy options for improving opportunity equality and modifications of urban segmentation.