IDEAS home Printed from https://ideas.repec.org/a/wsi/jicepx/v08y2017i03ns1793993317500132.html
   My bibliography  Save this article

Sharing the Benefits of China’s Growth by Providing Opportunities to All

Author

Listed:
  • Ben Westmore

    (Economics Department, Organisation for Economic Cooperation and Development (OECD), 2 rue André Pascal 75775 Paris Cedex 16, France)

Abstract

Living standards in China have greatly improved over the past few decades. Both sustained economic growth and an expansion of the social security system have contributed to a sharp reduction in the number of people in poverty. However, urban–rural inequalities remain large, and some of the poorest households are being left behind. Further reforms are needed to ensure that the benefits of future growth are shared and that marginalized groups have the opportunity to actively participate in the economy. In particular, policy settings should be adjusted to increase access to good quality education and healthcare for rural and migrant workers and to improve the portability of social security benefits. Changes to the social assistance system that raise work incentives and protect low-income households in poorer locations are also a priority. New spending measures can be funded by adjustments to the tax system which will, in themselves, benefit inclusiveness.

Suggested Citation

  • Ben Westmore, 2017. "Sharing the Benefits of China’s Growth by Providing Opportunities to All," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-33, October.
  • Handle: RePEc:wsi:jicepx:v:08:y:2017:i:03:n:s1793993317500132
    DOI: 10.1142/S1793993317500132
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1793993317500132
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S1793993317500132?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Durand-Lasserve, Olivier & Campagnolo, Lorenza & Chateau, Jean & Dellink, Rob, 2015. "Modelling of Distributional Impacts of Energy Subsidy Reforms: an Illustration with Indonesia," Climate Change and Sustainable Development 206853, Fondazione Eni Enrico Mattei (FEEM).
    2. Angelica Salvi del Pero & Willem Adema & Valeria Ferraro & Valérie Frey, 2016. "Policies to promote access to good-quality affordable housing in OECD countries," OECD Social, Employment and Migration Working Papers 176, OECD Publishing.
    3. Ravallion, Martin & Chen, Shaohua, 2015. "Benefit incidence with incentive effects, measurement errors and latent heterogeneity: A case study for China," Journal of Public Economics, Elsevier, vol. 128(C), pages 124-132.
    4. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.
    5. Bert Brys & Stephen Matthews & Richard Herd & Xiao Wang, 2013. "Tax Policy and Tax Reform in the People's Republic of China," OECD Taxation Working Papers 18, OECD Publishing.
    6. Dasgupta, Sukti. & Matsumoto, Makiko. & Xia, Cuntao., 2015. "Women in the labour market in China," ILO Working Papers 994879663402676, International Labour Organization.
    7. Golan,Jennifer & Sicular,Terry & Umapathi,Nithin, 2015. "Unconditional cash transfers in China : an analysis of the rural minimum living standard guarantee program," Policy Research Working Paper Series 7374, The World Bank.
    8. Lin Xiu & Morley Gunderson, 2015. "Occupational segregation and the gender earnings gap in China: devils in the details," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(5), pages 711-732, August.
    9. Yaojiang Shi & Yu Bai & Yanni Shen & Kaleigh Kenny & Scott Rozelle, 2016. "Effects of Parental Migration on Mental Health of Left-behind Children: Evidence from Northwestern China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(3), pages 105-122, May.
    10. Li, Chao & Gibson, John, 2013. "Rising Regional Inequality in China: Fact or Artifact?," World Development, Elsevier, vol. 47(C), pages 16-29.
    11. Immervoll, Herwig & Pearson, Mark, 2009. "A Good Time for Making Work Pay? Taking Stock of In-Work Benefits and Related Measures across the OECD," IZA Policy Papers 3, Institute of Labor Economics (IZA).
    12. Jason Gagnon & Theodora Xenogiani & Chunbing Xing, 2014. "Are migrants discriminated against in Chinese urban labour markets?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-23, December.
    13. Jiwei Qian & Ka Ho Mok, 2016. "Dual Decentralization and Fragmented Authoritarianism in Governance: Crowding Out among Social Programmes in China," Public Administration & Development, Blackwell Publishing, vol. 36(3), pages 185-197, August.
    14. Yang Song, 2016. "Hukou-based labour market discrimination and ownership structure in urban China," Urban Studies, Urban Studies Journal Limited, vol. 53(8), pages 1657-1673, June.
    15. Liu, Hong & Zhao, Zhong, 2014. "Does health insurance matter? Evidence from China’s urban resident basic medical insurance," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 1007-1020.
    16. Fenglian Du & Xiao-yuan Dong, 2013. "Women's Employment and Child Care Choices in Urban China during the Economic Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 62(1), pages 131-155.
    17. Mr. Waikei R Lam & Mr. Philippe Wingender, 2015. "China: How Can Revenue Reforms Contribute to Inclusive and Sustainable Growth?," IMF Working Papers 2015/066, International Monetary Fund.
    18. Tony Fang & Carl Lin, 2015. "Minimum wages and employment in China," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-30, December.
    19. Westmore, Ben, 2018. "Do government transfers reduce poverty in China? Micro evidence from five regions," China Economic Review, Elsevier, vol. 51(C), pages 59-69.
    20. Gao, Qin & Yang, Sui & Li, Shi, 2015. "Welfare, targeting, and anti-poverty effectiveness: The case of urban China," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 30-42.
    21. Bert Brys & Sarah Perret & Alastair Thomas & Pierce O’Reilly, 2016. "Tax Design for Inclusive Economic Growth," OECD Taxation Working Papers 26, OECD Publishing.
    22. Müge Adalet McGowan & Dan Andrews, 2015. "Skill Mismatch and Public Policy in OECD Countries," OECD Economics Department Working Papers 1210, OECD Publishing.
    23. Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 43-86, October.
    24. Serhan Cevik & Carolina Correa-Caro, 2020. "Growing (un)equal: fiscal policy and income inequality in China and BRIC+," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 25(4), pages 634-653, October.
    25. Margit Molnar, 2017. "Boosting firm dynamism and performance in China," OECD Economics Department Working Papers 1408, OECD Publishing.
    26. Liu, Kai & Wu, Qiaobing & Liu, Junqiang, 2014. "Examining the association between social health insurance participation and patients' out-of-pocket payments in China: The role of institutional arrangement," Social Science & Medicine, Elsevier, vol. 113(C), pages 95-103.
    27. Haining Wang & Fei Guo & Zhiming Cheng, 2015. "A distributional analysis of wage discrimination against migrant workers in China’s urban labour market," Urban Studies, Urban Studies Journal Limited, vol. 52(13), pages 2383-2403, October.
    28. repec:ilo:ilowps:487966 is not listed on IDEAS
    29. Frederick Solt, 2016. "The Standardized World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 1267-1281, November.
    30. Federico Cingano, 2014. "Trends in Income Inequality and its Impact on Economic Growth," OECD Social, Employment and Migration Working Papers 163, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Westmore, Ben, 2018. "Do government transfers reduce poverty in China? Micro evidence from five regions," China Economic Review, Elsevier, vol. 51(C), pages 59-69.
    2. Junying Lin & Zhonggen Zhang & Lingli Lv, 2019. "The Impact of Program Participation on Rural Household Income: Evidence from China’s Whole Village Poverty Alleviation Program," Sustainability, MDPI, vol. 11(6), pages 1-15, March.

    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. Jiandong Chen & Ping Wang & Jixian Zhou & Malin Song & Xinyue Zhang, 2022. "Influencing factors and efficiency of funds in humanitarian supply chains: the case of Chinese rural minimum living security funds," Annals of Operations Research, Springer, vol. 319(1), pages 413-438, December.
    2. José Alves & António Afonso, 2019. "Tax structure for consumption and income inequality: an empirical assessment," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(3), pages 337-364, November.
    3. Westmore, Ben, 2018. "Do government transfers reduce poverty in China? Micro evidence from five regions," China Economic Review, Elsevier, vol. 51(C), pages 59-69.
    4. Yuwan Duan & Erik Dietzenbacher & Bart Los & Ruochen Dai, 2023. "Regional inequality in China during its rise as a giant exporter: A value chain analysis," Journal of Regional Science, Wiley Blackwell, vol. 63(1), pages 148-172, January.
    5. Åsa Johansson, 2016. "Public Finance, Economic Growth and Inequality: A Survey of the Evidence," OECD Economics Department Working Papers 1346, OECD Publishing.
    6. Sudip Ranjan Basu, 2017. "Do data show divergence? Revisiting global income inequality trends," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 24(1), pages 23-53, June.
    7. Darius Erlangga & Marc Suhrcke & Shehzad Ali & Karen Bloor, 2019. "The impact of public health insurance on health care utilisation, financial protection and health status in low- and middle-income countries: A systematic review," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-20, August.
    8. Bartak, Jakub & Jabłoński, Łukasz & Tomkiewicz, Jacek, 2022. "Does income inequality explain public debt change in OECD countries?," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 211-224.
    9. Duc Hong Vo & Thang Cong Nguyen & Ngoc Phu Tran & Anh The Vo, 2019. "What Factors Affect Income Inequality and Economic Growth in Middle-Income Countries?," JRFM, MDPI, vol. 12(1), pages 1-12, March.
    10. Gan, Li & Hernandez, Manuel A. & Ma, Shuang, 2016. "The higher costs of doing business in China: Minimum wages and firms' export behavior," Journal of International Economics, Elsevier, vol. 100(C), pages 81-94.
    11. Tony Fang & Morley Gunderson & Carl Lin, 2021. "The impact of minimum wages on wages, wage spillovers, and employment in China: Evidence from longitudinal individual‐level data," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 854-877, May.
    12. Orsetta Causa & Mikkel Hermansen, 2017. "Income redistribution through taxes and transfers across OECD countries," OECD Economics Department Working Papers 1453, OECD Publishing.
    13. Ademola Obafemi Young, 2019. "Growth Impacts of Income Inequality: Empirical Evidence From Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 226-262, December.
    14. Tsun Se Cheong & Guanghua Wan & David Kam Hung Chui, 2022. "Unveiling the Relationship between Economic Growth and Equality for Developing Countries," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(5), pages 1-28, September.
    15. Agustin Redonda, 2016. "Tax Expenditures and Sustainability. An Overview," Discussion Notes 1603, Council on Economic Policies.
    16. Florian Dorn, 2016. "On Data and Trends in Income Inequality around the World," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 54-64, December.
    17. Sanjeev Gupta & João Tovar Jalles, 2020. "Tax Revenue Reforms and Income Distribution in Developing Countries," Working Papers REM 2020/0137, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    18. Björn Gustafsson & Haiyuan Wan, 2018. "Wage growth and inequality in urban China: 1988–2013," WIDER Working Paper Series 163, World Institute for Development Economic Research (UNU-WIDER).
    19. Brida, Juan Gabriel & Carrera, Edgar J. Sanchez & Segarra, Verónica, 2020. "Clustering and regime dynamics for economic growth and income inequality," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 99-108.
    20. He, Xiaobo & Luo, Zijun, 2020. "Does Hukou pay? Evidence from nanny markets in urban China," China Economic Review, Elsevier, vol. 63(C).

    More about this item

    Keywords

    China; inclusive growth; social assistance policies; education; health; pension system;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    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:wsi:jicepx:v:08:y:2017:i:03:n:s1793993317500132. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jicep/jicep.shtml .

    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.