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Determinants of Household Income Mobility in Rural China


  • Xuehua Shi
  • Xiaoyun Liu
  • Alexander Nuetah
  • Xian Xin


This article uses multivariate regression and decomposition analyses to assess household income mobility determinants and their contributions to income mobility in rural China from 1989 to 2006. The findings indicate that households with lower initial income level, higher share of wage income, higher educational level of household members, larger number of non-agricultural employed household members and younger heads are more mobile. Moreover, besides initial income, change in the share of wage income, change in the share of non-agricultural employed household members, and change in average year of education of household members are the most important factors that account for income mobility. These findings necessitate more emphasis on policies that promote non-agricultural employment and education to enhance household income mobility in rural China. Copyright (c) 2010 The Authors Journal compilation (c) 2010 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

Suggested Citation

  • Xuehua Shi & Xiaoyun Liu & Alexander Nuetah & Xian Xin, 2010. "Determinants of Household Income Mobility in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(2), pages 41-59.
  • Handle: RePEc:bla:chinae:v:18:y:2010:i:2:p:41-59

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    References listed on IDEAS

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    Cited by:

    1. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    2. Yi Chen & Frank A. Cowell, 2017. "Mobility in China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 203-218, June.
    3. Sui Yang, 2015. "Rural household income mobility in transitional China: Evidence from China Household Income Project," WIDER Working Paper Series 005, World Institute for Development Economic Research (UNU-WIDER).
    4. James Alm & Yongzheng Liu, 2014. "China's Tax-for-Fee Reform and Village Inequality," Oxford Development Studies, Taylor & Francis Journals, vol. 42(1), pages 38-64, March.

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