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Household Income Mobility in Rural China:1989-2006

  • Xuehua Shi
  • Alexander Nuetah
  • Xian Xin

    ()

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

Registered author(s):

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.

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File URL: http://www.cau.edu.cn/cem/news/newsfj/2009E001.pdf
File Function: First version, 2009
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Paper provided by China Agricultural University, College of Economics and Management in its series Working Papers with number 0901.

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Length: 21 pages
Date of creation: May 2009
Date of revision:
Handle: RePEc:cau:wpaper:0901
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  1. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-43, March.
  2. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  3. Woolard, Ingrid & Klasen, Stephan, 2004. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," IZA Discussion Papers 1030, Institute for the Study of Labor (IZA).
  4. Khor, Niny & Pencavel, John, 2006. "Income Mobility of Individuals in China and the United States," IZA Discussion Papers 2003, Institute for the Study of Labor (IZA).
  5. Michael Beenstock, 2004. "Rank And Quantity Mobility In The Empirical Dynamics Of Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(4), pages 519-541, December.
  6. Gardiner, Karen & Hills, John, 1999. "Policy Implications of New Data on Income Mobility," Economic Journal, Royal Economic Society, vol. 109(453), pages F91-111, February.
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