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Household income mobility in rural China: 1989-2006

Author

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  • Shi, Xuehua
  • Nuetah, J. Alexander
  • Xin, Xian

Abstract

This article analyzes household income mobility in rural China between 1989 and 2006. The results indicate that incomes in rural China are highly mobile. The high degree of rank and quantity mobility implies re-ranking and mean convergence in income distribution, but the disparity between them also enlarged with leveling-up and Gini divergence brought about by economic growth. In addition, there exists considerable transitorily poor and rich in positional mobility. Though, transitory movement provides an opportunity for both poor and rich and decreases long-term inequality, it also causes considerable income fluctuations and economic insecurity. Moreover, the equalizing effect of income mobility on income inequality is weakening.

Suggested Citation

  • Shi, Xuehua & Nuetah, J. Alexander & Xin, Xian, 2010. "Household income mobility in rural China: 1989-2006," Economic Modelling, Elsevier, vol. 27(5), pages 1090-1096, September.
  • Handle: RePEc:eee:ecmode:v:27:y:2010:i:5:p:1090-1096
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    References listed on IDEAS

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    1. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
    2. Gardiner, Karen & Hills, John, 1999. "Policy Implications of New Data on Income Mobility," Economic Journal, Royal Economic Society, vol. 109(453), pages 91-111, February.
    3. Niny Khor & John Pencavel, 2006. "Income mobility of individuals in China and the United States," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(3), pages 417-458, July.
    4. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    5. Michael Beenstock, 2004. "Rank And Quantity Mobility In The Empirical Dynamics Of Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(4), pages 519-541, December.
    6. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-443, March.
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    Cited by:

    1. 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.
    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. Huang, Jing & Wang, Yougui, 2014. "The time-dependent characteristics of relative mobility," Economic Modelling, Elsevier, vol. 37(C), pages 291-295.
    4. repec:bla:revinw:v:63:y:2017:i:2:p:219-233 is not listed on IDEAS
    5. 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).

    More about this item

    Keywords

    Income inequality Income mobility Rural household China;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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