Instrumental variable test.

By stimulating social vitality and improving innovation efficiency, intergenerational mobility plays an essential role in economic development. With the data from China Labor-force Dynamic Survey (CLDS) and A-share listed companies, this paper uses the methodology of intergenerational order correlation to measure regional intergenerational mobility, and examines the impact of regional intergenerational mobility on corporate innovation. The results are as follows: (1) Regional intergenerational mobility promotes corporate innovation both quantitatively and qualitatively, and a series of robustness tests confirm our findings; (2) Two channels identified are government-enterprise human capital allocation and fairness perception; (3) Heterogeneity analysis shows that the innovation effect of regional intergenerational mobility is more significant in the high-tech industry and private enterprises; (4) Multi-dimensional market-oriented policy can be used to get rid of the shackles of low intergenerational mobility on corporate innovation. Our findings provide implications for developing countries on how to address the relationship between inequality and economic development.