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Household Income Mobility in Rural China:1989-2006

Author

Listed:
  • Xuehua Shi
  • Alexander Nuetah
  • Xian Xin

    (College of Economics and Management, China Agricultural University Center for Rural Development Policy,China Agricultural University)

Abstract

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 then 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.

Suggested Citation

  • Xuehua Shi & Alexander Nuetah & Xian Xin, 2009. "Household Income Mobility in Rural China:1989-2006," Working Papers 0901, China Agricultural University, College of Economics and Management.
    • Handle: RePEc:cau:wpaper:0901
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    File URL: http://www.cau.edu.cn/cem/news/newsfj/2009E001.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Fields, Gary S. & Meng, Xin & Song, Yang, 2022. "Earnings mobility during labor market reforms in urban China," China Economic Review, Elsevier, vol. 75(C).
    3. Huang, Jing & Wang, Yougui, 2014. "The time-dependent characteristics of relative mobility," Economic Modelling, Elsevier, vol. 37(C), pages 291-295.
    4. Sui Yang, 2015. "Rural household income mobility in transitional China: Evidence from China Household Income Project," WIDER Working Paper Series 005, World Institute for Development Economic Research (UNU-WIDER).
    5. Zeng, Ting & Zhu, Shenghao, 2022. "The mobility of top earnings, income, and wealth in China: Facts from the 2011–2017 China household finance survey," Journal of Asian Economics, Elsevier, vol. 80(C).
    6. James Alm & Yongzheng Liu, 2014. "China's Tax-for-Fee Reform and Village Inequality," Oxford Development Studies, Taylor & Francis Journals, vol. 42(1), pages 38-64, March.
    7. Yi Chen & Frank A. Cowell, 2017. "Mobility in China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 203-218, June.
    8. Sui Yang, 2015. "Rural household income mobility in transitional China: Evidence from China household income project," WIDER Working Paper Series wp-2015-005, World Institute for Development Economic Research (UNU-WIDER).
    9. Weici Yuan, 2017. "The Sins of the Fathers: Intergenerational Income Mobility in China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 219-233, June.
    10. Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2019. "Health outcomes, health inequality and Mandarin proficiency in urban China," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    11. Madhura Swaminathan & Vikas Rawal, 2011. "Is India Really a Country of Low Income-Inequality? Observations from Eight Villages," Journal, Review of Agrarian Studies, vol. 1(1), pages 1-22, January-J.

    More about this item

    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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