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The Increasing Inequality of Wealth in China, 2002-2013

Author

Listed:
  • John Knight
  • LI Shi
  • WAN Haiyuan

Abstract

The inequality of wealth in China has increased rapidly in recent years. Prior to 1978 all Chinese households possessed negligible wealth. China therefore presents a fascinating case study of how inequality of household wealth increases as economic reform takes place, marketisation occurs, and capital accumulates. Wealth inequality and its growth are measured and decomposed using data from two national sample surveys of the China Household Income Project (CHIP) relating to 2002 and 2013. Techniques are devised and applied to measure the sensitivity of wealth inequality to plausible assumptions about under-representation of and under-reporting by the wealthy. An attempt is made to explain the rising wealth inequality in terms of the relationships between income and wealth, house price inflation, differential saving, and income from wealth.

Suggested Citation

  • John Knight & LI Shi & WAN Haiyuan, 2016. "The Increasing Inequality of Wealth in China, 2002-2013," Economics Series Working Papers 816, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:816
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    References listed on IDEAS

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    Cited by:

    1. Wei Zheng & Zining Liu & Ruo Jia, 2019. "How private sector participation improves retirement preparation: A case from China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 123-147, January.
    2. Shi Li & Haiyuan Wan & Qinghai Li, 2018. "Top incomes in China: Data collection and the impact on income inequality," WIDER Working Paper Series 183, World Institute for Development Economic Research (UNU-WIDER).
    3. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2021. "The great Chinese inequality turnaround," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 467-482.
    4. Thomas Piketty & Li Yang & Gabriel Zucman, 2019. "Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015," American Economic Review, American Economic Association, vol. 109(7), pages 2469-2496, July.
    5. Li, Qinghai & Li, Shi & Wan, Haiyuan, 2020. "Top incomes in China: Data collection and the impact on income inequality," China Economic Review, Elsevier, vol. 62(C).
    6. Ceglarz, Andrzej & Beneking, Andreas & Ellenbeck, Saskia & Battaglini, Antonella, 2017. "Understanding the role of trust in power line development projects: Evidence from two case studies in Norway," Energy Policy, Elsevier, vol. 110(C), pages 570-580.

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    Keywords

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    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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