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Household income mobility in rural China: 1989-2006

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

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File URL: http://www.sciencedirect.com/science/article/B6VB1-50338WH-2/2/857eed5864919c0e7748f8f4dcbf8c58
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 27 (2010)
Issue (Month): 5 (September)
Pages: 1090-1096

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Handle: RePEc:eee:ecmode:v:27:y:2010:i:5:p:1090-1096
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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  1. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-43, March.
  2. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  3. Niny Khor & John Pencavel, 2006. "Income Mobility of Individuals In China and the United States," Discussion Papers 05-009, Stanford Institute for Economic Policy Research.
  4. 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.
  5. Gardiner, Karen & Hills, John, 1999. "Policy Implications of New Data on Income Mobility," Economic Journal, Royal Economic Society, vol. 109(453), pages F91-111, February.
  6. 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.
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