Abstract:Income mobility has important effect on income distribution pattern and good income mobility structure is conducive to narrowing income gap and optimizing income pattern. Based on tracing survey data of Chinese families during 2010-2016, this paper found that the income flow structure during 2010-2012, 2012-2014 and 2014-2016 was developed reasonably, the up/down ratio of family income mobility of the whole sample, rural sample and urban sample was bigger than 1, which was conducive to the optimization of income distribution pattern. Although the probability of low-income households moving upwards is high, the form of high-income households sticking to their economic status has expanded. From long-term perspective, the promotion of education level and happiness sense is helpful to prevent the downward mobility of family income. Thus, we should further boost education quality and really increase the happiness sense of Chinese people.