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The Determinants of Household Income Mobility in Rural China


  • Xuehua Shi
  • Xiaoyun Liu
  • Alexander Nuetah
  • Xian Xin

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


This article uses multivariate regression and decomposition analyses to assess household income mobility determinants and their contributions to income mobility in rural China from 1989 to 2006 using panel data from the China Health and Nutrition Survey (CHNS) database. The findings indicate that households with low initial income level, high share of wage income, high educational level of household members, high number of non-agricultural employed household members, and younger heads are more mobile. Moreover, besides initial income, change in the share of wage income, change in the share of non-agricultural employed household members, and change in average year of education of household members are the most important factors that account for income mobility. These findings necessitate more emphasis on policies that promote non-agricultural employment and education to enhance household income mobility in rural China.

Suggested Citation

  • Xuehua Shi & Xiaoyun Liu & Alexander Nuetah & Xian Xin, 2010. "The Determinants of Household Income Mobility in Rural China," Working Papers 1002, China Agricultural University, College of Economics and Management.
  • Handle: RePEc:cau:wpaper:1002

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    References listed on IDEAS

    1. Xian Xin & Xiuqing Wang, 2007. "Was China¡¯s Inflation in 2004 Led by An Agricultural Price Rise?," Working Papers 0702, China Agricultural University, College of Economics and Management.
    2. Ardeni, Pier Giorgio & Freebairn, John, 2002. "The macroeconomics of agriculture," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 28, pages 1455-1485 Elsevier.
    3. Xiwen Chen, 2009. "Review of China's agricultural and rural development: policy changes and current issues," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(2), pages 121-135, January.
    4. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
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    More about this item


    Income Mobility; Determinants; Rural Household; China;

    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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