Gains and losses under economic reform: Understanding individual experience and the preference for state intervention in transition China

Abstract

ABSTRACT Chinese citizens lived under a state socialist regime with heavy state intervention from 1957 to 1978, after which time China began its market oriented economic reforms. This paper investigates whether personal experiences, particularly economic and political experiences are related to Chinese citizens’ preference for state intervention during the transition period. Based on the World Value Survey data collected between 2017 and 2018, I found that Chinese people who have experienced negative economic shocks since market reform are more likely to support government redistribution as opposed to economic liberalization. Individual attitudes toward the role of the state are also associated with experiences of affiliation with the state sector, and an instrumental variable analysis shows that state sector affiliation has a causal effect on redistribution preference. The findings contribute to studies of redistribution preference formation in a country where market forces and Communist Party rule coexist, as well as revealing how the primary political goal shapes the redistribution preference of individuals under an authoritarian regime.