The Impact of Sent-Down Experience on Personal Income

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Abstract

Using data from Chinese Family Panel Studies (CFPS), this paper investigated the impact of sent-down experience on personal income and explored the selective and mediating effect of education on the above relationship. The findings indicated that the sent-down experience had a significant positive effect on the youth income. Education therein had a selective and intermediary effect on this influencing mechanism. In addition, the timing of sent-down experience had a significant impact on personal income. The conclusion also addressed the intergenerational implications of high levels of cumulative disadvantage on the education years among the cohort of educated youth.

Author

• Sibo Zhao, Central University of Finance and Economics