The material stock inequality in Chinese rural households

Abstract

Rural inequality has been a significant challenge in promoting sustainable development in rural areas. China, as a typical developing country, has made considerable progress in reducing rural inequality in recent years. However, it is crucial to understand the factors that influence inequality due to its complex and multifaceted nature. This study presents a novel perspective in evaluating household inequality in rural China by considering household material stocks and analyzing their spatial and temporal patterns. Based on panel data from around 2000 rural households, the study indicates a continuous and steady decline in inequality levels from 2007 to 2018. In 2018, the highest levels of inequality were observed in transportation tools, with a material stock Gini coefficient of 0.710, followed by metallic minerals (0.605), residential buildings (0.438), and home appliances (0.345). Furthermore, regional heterogeneity in household inequality in material stocks was observed. Jiangsu Province exhibited significantly lower inequality compared to other provinces. Conversely, Shaanxi Province displayed the largest inequality in residential buildings, while Sichuan Province showed the highest inequality in home appliances. The decomposition of inequality indicated that inter-provincial inequality contributes more to overall inequality in household material stocks than intra-provincial inequality. Factors such as education and dependency ratio were increasingly influential in contributing to inequality. The study further discussed potential approaches to reducing inequality in rural China and highlights the limitations of the research. The findings provide insights for China and other developing countries in their efforts to reduce rural inequality.