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Household Wealth Distribution and Its Impact in China: Evidence from the China Family Panel Studies

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  • Wenjie Hu

    (School of Economics, Renmin University of China, Beijing 100872, China)

  • Tiantian Gao

    (School of Economics, Renmin University of China, Beijing 100872, China)

Abstract

As China has experienced rapid economic growth, the study of household wealth distribution has become a pressing issue. This paper uses data from the 2012–2018 China Family Panel Studies (CFPS) to examine the impact of demographic factors and urban–rural differences on household wealth distribution. The study finds that China’s household wealth Gini coefficient has increased significantly, with wealthier households accumulating wealth at a much faster rate than those at the bottom. In addition, negative wealth households, hand-to-mouth households, and indebted households have all shown an upward trend. Despite small marginal effects, demographic factors such as education, average household age, elderly numbers, and household size do not significantly affect the overall trend of the wealth distribution. Both rural and urban households at the top maintain high growth rates, but the average urban household experiences faster wealth growth than its rural counterpart. Asset allocation between rural and urban households also shows significant differences. This analysis underscores the importance of examining wealth distribution to promote equitable resource allocation and economic stability. Policymakers can use the findings of this study to reduce economic disparities and achieve the goal of common prosperity in China.

Suggested Citation

  • Wenjie Hu & Tiantian Gao, 2023. "Household Wealth Distribution and Its Impact in China: Evidence from the China Family Panel Studies," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6928-:d:1128014
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    References listed on IDEAS

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    Cited by:

    1. Toan Tan Pham & Ngoc Duc Lang & Chi Minh Ho & Duc Hong Vo, 2024. "Educational Attainment, Household Income and Wealth Accumulation in Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(2), pages 635-671, March.

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