DSA2018: Global inequalities
This paper panel will examine the experiences and lessons from China in combating many dimentional of inequalities. It aims for a synergy of some high quality papers and will encourage the exchange of ideas among scholars. The panellists will consist of some of the authorities in the field.
Since the reform began in 1978, China's GDP has been grown at an average annual rate of 9.6%. The per capita income rose from less than one third of the sub-Saharan African countries in 1978 to US $ 8600 in 2017. According to the 2011 Chinese poverty line (2,300 yuan at 2010 prices, equivalent to $2/day), the number of people under poverty has dropped from 85% of population in 1978 to 4% in 2017.
However, in spite of the achievement, it is facing various economic and social challenges. The inequality has continuously been high with Gini coefficient being above 0.47 for a prolonged period. There has been substantial rural-urban divide and regional divide regarding gaps in income, consumption, education, healthcare, pension and many other areas. These gaps meant that the fruit of economic development has not benefited the people equally, which might lead to a higher degree of substantial social problems and social tensions.
This panel aims to address the challenges of income and wealth inequality, as well as other dimensions of inequality. We hope the high quality papers in this panel will stimulate research in this field, and will help China in addressing its problems of the inequality and in adopting a more balanced approach.
This panel is closed to new paper proposals.
Relative Deprivation and Social Groups in China
This paper links relative deprivation with theory of relative utility to study the welfare implications of inequality among social groups. In one dimension, our findings prove evidence of the success of urbanization, development of west area and education expansion in reducing income inequality. In the other dimension, we conclude that policies targeting reducing deprivation among some social groups, such as rural residence, the adults and the elderly, the poor class, lower educated group and those living in the West, are effective in addressing overall inequality.
The Increasing Inequality of Wealth in China, 2002-2013
The inequality of wealth in China has increased rapidly in recent years. 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.
: 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.
Decomposition of regional income inequality: a new method and applications to urban China
A new regression-based decomposition method is developed to estimate the contribution of regional factors to total income inequality. The method is applied to the Chinese urban data for the reference year of 2007 and compared to more traditional regression-based decomposition methods.
A new regression-based decomposition method is developed to estimate the contribution of regional factors to total income inequality. Unlike the previous regression-based decomposition methods, it enables attributing total income inequality to five parts: pure regional effect, inter-regional differences in coefficients, inter- and intra-regional differences in characteristics, and an unexplained part. It follows that our approach has advantages over the existing regression-based decomposition methods in that the effects on total inequality of differential returns to income determinants across regions can be calculated, and the contributions to total inequality of the intra- and inter-regional distributions of income determinants can be distinguished.The method is applied to data for urban China in 2007 and our decomposition results lead in this application to clearer policy implications than the results based on the Shorrocks method.
The impact of migration on left-behind parents' happiness in rural China
This paper analysis the impact of young generations' migration action on the left-behind elders' happiness. We find: the elders' happiness is positively affected by their children's migration action. The economic support and the take-care time from the children affect most.
This paper analysis the left-behind elders' happiness, based on studying the mechanism of young generations' migration action to the left-behind elder. Using the China Health and Retirement Longitudinal Study (CHARLS 2013) dataset, we find: the elders' happiness is positively affected by their children's migration action. When using the instrumental variables to correct the endogeneity, the result still holds. Dividing the groups by "whether have children migrant", the economic support and the take-care time from the children, and the elders' characters affect most to the elders. Further analysis shows the elder's transfer income increased 1.72 times through the children's migration action, but the take-care time reduced 117 days/year as a cost. The former has positive effect and the later has negative effect, in total, a positive effect. Considering migration is common in rural China, this paper's meaning lies on provides suggestion on the elder's sense of happiness. The policy implication is to improve the rural social welfare system, to set-off the negative effects from the young generation's migration action.
This panel is closed to new paper proposals.