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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
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    References listed on IDEAS

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    Cited by:

    1. Fields, Gary S. & Meng, Xin & Song, Yang, 2022. "Earnings mobility during labor market reforms in urban China," China Economic Review, Elsevier, vol. 75(C).
    2. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia: The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. Shi, Xinjie, 2022. "Inequality of opportunity in earnings in rural China," Journal of Asian Economics, Elsevier, vol. 81(C).
    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. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    6. Magda, Iga & Bukowski, Maciej & Buchholz, Sonia & Lewandowski, Piotr & Chrostek, Paweł & Kamińska, Agnieszka & Lis, Maciej & Potoczna, Monika & Myck, Michał & Kundera, Michał & Oczkowska, Monika, 2013. "Employment in Poland 2011 - Poverty and jobs," MPRA Paper 50185, University Library of Munich, Germany.
    7. Wu, Bangzheng & Yue, Pengpeng & Zuo, Shengqiang, 2023. "Borrow to be the poor or the rich? It depends: Credit market and wealth accumulation," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 804-821.
    8. 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.
    9. 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).
    10. 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.
    11. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia : The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland, Institute for Economies in Transition.
    12. 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).
    13. Swaminathan, Madhura & Rawal, Vikas, 2011. "Is India Really a Country of Low Income-Inequality? Observations from Eight Villages," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 1(1), July.
    14. repec:zbw:bofitp:2020_011 is not listed on IDEAS
    15. 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.
    16. 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.
    17. 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.

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    More about this item

    Keywords

    Income Mobility; Determinants; Rural Household; China;
    All these keywords.

    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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