IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v12y2023i3p653-d1093670.html
   My bibliography  Save this article

Inequity in Housing Welfare: Assessing the Inter-City Performance of China’s Housing Provident Fund Program

Author

Listed:
  • Hongyan Chen

    (Faculty of Geographical Science, Beijing Normal University, No. 19, Xinjiekouwai Street, Haidian District, Beijing 100875, China)

  • Jinping Song

    (Faculty of Geographical Science, Beijing Normal University, No. 19, Xinjiekouwai Street, Haidian District, Beijing 100875, China)

  • Huaxiong Jiang

    (Faculty of Geographical Science, Beijing Normal University, No. 19, Xinjiekouwai Street, Haidian District, Beijing 100875, China)

Abstract

Accompanied by the monetisation of housing allocation, the Housing Provident Fund (HPF) has become an important part of China’s housing security system. As of 2020, HPF has been implemented for almost 30 years, but limited effort has been made to examine its performance, especially from a spatial (regional) perspective. Taking 287 Chinese cities as a sample and using the “access–process–outcome” framework, this study explores the inter-city differences in the performance of HPF and their relevant influencing factors. The results show that (1) there is significant spatial heterogeneity in the performance of HPF in China; (2) from 2015 to 2020, regional variation in the process and outcome performance showed a convergence trend, but the access performance between cities tended to widen and diverge; (3) regression results show that process-relevant variables (i.e., the contribution rate and the capital utilization level) are positively associated with the loan beneficiary rate (the HPF outcome performance), whereas access-relevant attributes (i.e., the HPF participation rate) exert negative influences. The study contributes to revealing the spatial heterogeneity of China’s HPF development. It highlights that more regionally oriented policy interventions are needed for policy makers and practitioners to optimize the development of HPF.

Suggested Citation

  • Hongyan Chen & Jinping Song & Huaxiong Jiang, 2023. "Inequity in Housing Welfare: Assessing the Inter-City Performance of China’s Housing Provident Fund Program," Land, MDPI, vol. 12(3), pages 1-17, March.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:3:p:653-:d:1093670
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/12/3/653/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/12/3/653/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Manuel B. Aalbers, 2017. "The Variegated Financialization of Housing," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 41(4), pages 542-554, July.
    2. Tang, Mingzhe & Coulson, N. Edward, 2017. "The impact of China's housing provident fund on homeownership, housing consumption and housing investment," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 25-37.
    3. Yong Tu, 1999. "Public Homeownership, Housing Finance and Socioeconomic Development in Singapore," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 11(2), pages 100-113, July.
    4. Aaberge, Rolf & Mogstad, Magne & Peragine, Vito, 2011. "Measuring long-term inequality of opportunity," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 193-204, April.
    5. Fu, Yuming & Tse, David K. & Zhou, Nan, 2000. "Housing Choice Behavior of Urban Workers in China's Transition to a Housing Market," Journal of Urban Economics, Elsevier, vol. 47(1), pages 61-87, January.
    6. Sanjaya DeSilva & Yuval Elmelech, 2012. "Housing Inequality in the United States: Explaining the White-Minority Disparities in Homeownership," Housing Studies, Taylor & Francis Journals, vol. 27(1), pages 1-26.
    7. Susanne Heeg & Maria Verónica Ibarra García & Luis Alberto Salinas Arreortua, 2020. "Financialization of Housing in Mexico: The Case of Cuautitlan Izcalli and Huehuetoca in the Metropolitan Region of Mexico City," Housing Policy Debate, Taylor & Francis Journals, vol. 30(4), pages 512-532, July.
    8. Loic Chiquier & Michael Lea, 2009. "Housing Finance Policy in Emerging Markets," World Bank Publications - Books, The World Bank Group, number 2641, December.
    9. Youqin Huang & Leiwen Jiang, 2009. "Housing Inequality in Transitional Beijing," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(4), pages 936-956, December.
    10. Cowell, Frank, 2011. "Measuring Inequality," OUP Catalogue, Oxford University Press, edition 3, number 9780199594047.
    11. Steven C. Bourassa & Ming Yin, 2008. "Tax Deductions, Tax Credits and the Homeownership Rate of Young Urban Adults in the United States," Urban Studies, Urban Studies Journal Limited, vol. 45(5-6), pages 1141-1161, May.
    12. Michael Atafo Adabre & Albert P.C. Chan, 2019. "The ends required to justify the means for sustainable affordable housing: A review on critical success criteria," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(4), pages 781-794, July.
    13. Bo‐sin Tang & Winky K.O. Ho & Siu Wai Wong, 2021. "Sustainable development scale of housing estates: An economic assessment using machine learning approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 708-718, July.
    14. Yilan Xu, 2017. "Mandatory savings, credit access and home ownership: The case of the housing provident fund," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3446-3463, November.
    15. Mengkai Chen & Yidong Wu & Guiwen Liu & Xianzhu Wang, 2020. "The Effect of the Housing Provident Fund on Income Redistribution: The Case of China," Housing Policy Debate, Taylor & Francis Journals, vol. 30(6), pages 879-899, November.
    16. Koh, Benedict S. K. & Mitchell, Olivia S. & Tanuwidjaja, Toto & Fong, Joelle, 2008. "Investment patterns in Singapore's Central Provident Fund System," Journal of Pension Economics and Finance, Cambridge University Press, vol. 7(1), pages 37-65, March.
    17. Jie Chen & Lan Deng, 2014. "Financing Affordable Housing Through Compulsory Saving: The Two-Decade Experience of Housing Provident Fund in China," Housing Studies, Taylor & Francis Journals, vol. 29(7), pages 937-958, October.
    18. Ya Ping Wang & Alan Murie, 2000. "Social and Spatial Implications of Housing Reform in China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 24(2), pages 397-417, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mengkai Chen & Yidong Wu & Guiwen Liu & Xianzhu Wang, 2020. "City economic development, housing availability, and migrants' settlement intentions: Evidence from China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1239-1258, September.
    2. Alejandra Reyes & Patricia Basile, 2022. "The Distinctive Evolution Of Housing Financialization In Brazil And Mexico," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 46(6), pages 933-953, November.
    3. Yilan Xu, 2017. "Mandatory savings, credit access and home ownership: The case of the housing provident fund," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3446-3463, November.
    4. Xiang Zhang & Yanhuang Zheng & Chuanhao Tian, 2021. "Who Benefits from the Housing Provident Fund System in China? An Analysis of the Internal Rate of Return for Typical Employees with Different Incomes," Sustainability, MDPI, vol. 13(9), pages 1-18, April.
    5. Zan Yang & Songtao Wang, 2011. "The impact of privatization of public housing on housing affordability in Beijing: An assessment using household survey data," Local Economy, London South Bank University, vol. 26(5), pages 384-400, August.
    6. Shweta Bahl & Ajay Sharma, 2021. "Education–Occupation Mismatch and Dispersion in Returns to Education: Evidence from India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(1), pages 251-298, January.
    7. Jakub Bartak & Łukasz Jabłoński, 2020. "Inequality and growth: What comes from the different inequality measures?," Bulletin of Economic Research, Wiley Blackwell, vol. 72(2), pages 185-212, April.
    8. Brian A'Hearn & Stefano Chianese & Giovanni Vecchi, 2020. "Aristocracy and Inequality in Italy, 1861-1931," HHB Working Papers Series 18, The Historical Household Budgets Project.
    9. Iddo Eliazar & Giovanni M. Giorgi, 2020. "From Gini to Bonferroni to Tsallis: an inequality-indices trek," METRON, Springer;Sapienza Università di Roma, vol. 78(2), pages 119-153, August.
    10. Alvaredo, Facundo & Cogneau, Denis & Piketty, Thomas, 2021. "Income inequality under colonial rule. Evidence from French Algeria, Cameroon, Tunisia, and Vietnam and comparisons with British colonies 1920–1960," Journal of Development Economics, Elsevier, vol. 152(C).
    11. Antonella Rita Ferrara & Rosanna Nisticò, 2019. "Does Institutional Quality Matter for Multidimensional Well-Being Inequalities? Insights from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1063-1105, October.
    12. Behnam Ata & Parisa Pakrooh & Ayoub Barkat & Ramzi Benhizia & János Pénzes, 2022. "Inequalities in Regional Level Domestic CO 2 Emissions and Energy Use: A Case Study of Iran," Energies, MDPI, vol. 15(11), pages 1-26, May.
    13. Junhua Chen & Shufan Ma & Na Liu, 2023. "Multi-dimensional Housing Inequality Index: The Provincial Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 633-654, January.
    14. Bach, Stefan & Thiemann, Andreas & Zucco, Aline, 2019. "Looking for the missing rich: tracing the top tail of the wealth distribution," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(6), pages 1234-1258.
    15. Pritam Ghosh & Asraful Alam & Nilanjana Ghosal & Debodatta Saha, 2021. "A Geospatial Analysis of Temporary Housing Inequality among Socially Marginalized and Privileged Groups in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 798-819, June.
    16. Yonatan Berman, 2022. "The Long-Run Evolution of Absolute Intergenerational Mobility," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 61-83, July.
    17. Tatjana Miljkovic & Ying-Ju Chen, 2021. "A new computational approach for estimation of the Gini index based on grouped data," Computational Statistics, Springer, vol. 36(3), pages 2289-2311, September.
    18. Bhuller, Manudeep & Mogstad, Magne & Salvanes, Kjell G., 2011. "Life-Cycle Bias and the Returns to Schooling in Current and Lifetime Earnings," IZA Discussion Papers 5788, Institute of Labor Economics (IZA).
    19. Sharma, Ishant & Mishra, Sabyasachee & Golias, Mihalis M. & Welch, Timothy F. & Cherry, Christopher R., 2020. "Equity of transit connectivity in Tennessee cities," Journal of Transport Geography, Elsevier, vol. 86(C).
    20. Van de gaer, Dirk & Palmisano, Flaviana, 2021. "Growth, mobility and social progress," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 164-182.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:12:y:2023:i:3:p:653-:d:1093670. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.