The Impact of Corruption on Social Mobility

In a post for the Brookings Institution, David Dollar laments China’s problematically low social mobility, and offers three factors preventing China from becoming a true land of opportunity: (1) the hukou residential registration system (which restricts labor mobility); (2) locally-funded education (which disadvantages poorer rural communities); and (3) growing corruption–because, as Dollar argues, it is “easier for elite families to pass on status and income to their children when there aren’t clear rules and fair competition.” . However, although the view that corruption inhibits social mobility is widespread, and Dollar’s point is partly correct, in reality the picture is more complex. Continue reading