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The Determinants of Household Income Mobility in Rural China

Author

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

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

Abstract

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
    as

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    File URL: http://www.cau.edu.cn/cem/news/newsfj/2010E002.pdf
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    References listed on IDEAS

    as
    1. Shi, Xuehua & Nuetah, J. Alexander & Xin, Xian, 2010. "Household income mobility in rural China: 1989-2006," Economic Modelling, Elsevier, vol. 27(5), pages 1090-1096, September.
    2. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
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    4. Niny Khor & John Pencavel, 2006. "Income mobility of individuals in China and the United States," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(3), pages 417-458, July.
    5. Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
    6. Ding, Ning & Wang, Yougui, 2008. "Household income mobility in China and its decomposition," China Economic Review, Elsevier, vol. 19(3), pages 373-380, September.
    7. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    8. Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003. "For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 67-99, April.
    9. repec:dau:papers:123456789/1562 is not listed on IDEAS
    10. Fields, Gary S & Yoo, Gyeongjoon, 2000. "Falling Labor Income Inequality in Korea's Economic Growth: Patterns and Underlying Causes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 139-159, June.
    11. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
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    Citations

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    Cited by:

    1. 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).
    2. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    3. 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.
    4. repec:bla:revinw:v:63:y:2017:i:2:p:219-233 is not listed on IDEAS
    5. 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.
    6. Ding, S. & Yang, J. & Chen, Y., 2018. "Income Mobility of Farm Households with Land-expropriated in the Process of Industrialization and Urbanization in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276962, International Association of Agricultural Economists.

    More about this item

    Keywords

    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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