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Can Multiple Shocks Affect Household Income? Evidence from Poor Rural Areas in China

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  • Yuying Yang

    (Renmin University of China)

  • Duanyang Gao

    (Renmin University of China)

  • Rui Li

    (Dalian Maritime University)

Abstract

When transforming from a traditional rural economy to a rapid marketization period, it is essential to consider the relationship between multiple shocks and household income in poor rural areas of China. Using two waves of a rural household surveys from six poor counties in China between 2015 and 2018, we examine the effect of multiple shocks on households’ income and explore the heterogeneity of different shocks and households based on income. The multiple linear regression and quantile regression results demonstrate that multiple shocks negatively affect farm household income, and the range of impact is widening. Specifically, natural disaster shocks reduce the income of low-income households more, and unnatural disaster shocks reduce the income of middle–low-income farm households more. We conclude that illness within the family and lack of working household members are the primary shocks currently suffered by different types of farm households. In contrast to previous research, this study identifies middle–low-income farm households as most in need of attention and reveals that unnatural disaster shocks in poor rural areas of China are most in need of governance during recovery transitions. The findings enrich the existing theoretical system and provide policymakers with practical insights regarding differentiated and preemptive risk governance approaches.

Suggested Citation

  • Yuying Yang & Duanyang Gao & Rui Li, 2024. "Can Multiple Shocks Affect Household Income? Evidence from Poor Rural Areas in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 171(2), pages 439-466, January.
    • Handle: RePEc:spr:soinre:v:171:y:2024:i:2:d:10.1007_s11205-023-03265-9
    DOI: 10.1007/s11205-023-03265-9
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