Inequality In China Research Articles

Navigating the Landscape of Chinese Inequality: Empirical Findings on Income and Wealth, 2011-2019

This paper gives a comprehensive analysis of income and wealth inequality in China during its recent remarkable economic transformation. Using comprehensive data from the China Household Finance Survey (CHFS) between 2011 and 2019, I present the first empirical study on income and wealth inequality in urban and rural China. The results indicate a steady rise in income inequality over time, resulting in persistent wealth inequality. These findings shed light on policies that aim at reducing economic inequality.

Income inequality effect of government investment behavior: Comparisons based on different investment areas, different regions and different groups in China

The research focuses on and analyses the effect of government investment on income distribution by evaluating the effects of public spending on income variation in various fields, in various regions, and at different income levels in the Chinese economy. The study found that government investment in different fields substantially decreases income inequality. Increasing housing security, medical, agriculture, forestry and other expenditures has a significant impact on improving the income inequality between rural and urban inhabitants; the impact of government investment in the western, central, and eastern regions on the reduction of income variation is decreasing successively, with emphasis on government investment in the western and central regions. The effects of government investment on the decline of the income distribution are twofold: first, it influences the amount of low- and middle-income groups; second, it has an impact on the reduction of high-income organizations; however, the impact on the income equality of high-income and low-income organizations is not considerable. In investment, the study demonstrates that income inequality can be reduced without negatively affecting the financial status of higher-income individuals. It is significant to value providing adequate housing security for low-income populations as a critical policy implication. This study, utilizing novel indicators, contributes to the current body of research on the impact of fiscal policy in addressing income inequality in China.

Spatiotemporal patterns of surface ozone exposure inequality in China.

Rising surface ozone (O3) levels in China are increasingly emphasizing the potential threats to public health, ecological balance, and economic sustainability. Using a 1km × 1km dataset of O3 concentrations, this research employs subpopulation demographic data combined with a population-weighted quality model. Its aim is to evaluate quantitatively the differences in O3 exposure among various subpopulations within China, both at a provincial and urban cluster level. Additionally, an exposure disparity indicator was devised to establish unambiguous exposure risks among significant urban agglomerations at varying O3 concentration levels. The findings reveal that as of 2018, the population-weighted average concentration of O3 for all subgroups has experienced a significant uptick, surpassing the average O3 concentration (118μg/m3). Notably, the middle-aged demographic exhibited the highest O3 exposure level at 135.7μg/m3, which is significantly elevated compared to other age brackets. Concurrently, there exists a prominent positive correlation between educational attainment and O3 exposure levels, with the medium-income bracket showing the greatest susceptibility to O3 exposure risks. From an industrial vantage point, the secondary sector demographic is the most adversely impacted by O3 exposure. In terms of urban-rural structure, urban groups in all regions had higher levels of exposure to O3 than rural areas, with North and East China having the most significant levels of exposure. These findings not only emphasize the intricate interplay between public health and environmental justice but further highlight the indispensability of segmented subgroup strategies in environmental health risk assessment. Moreover, this research furnishes invaluable scientific groundwork for crafting targeted public health interventions and sustainable air quality management policies.

Low‐rise buildings in big cities: Theory and evidence from China

AbstractThis article explores the determinants of floor area ratio (FAR) limit, a major form of construction density regulation, in China. I develop a spatial equilibrium framework to study local governments’ optimal FAR design and investigate over 400,000 residential land transactions between 2007 and 2019 to perform the empirical analysis. Exploiting the exogenous variations generated by administrative adjustments and applying a propensity score matching approach, I find that a one standard deviation increase in local budgetary revenue decreases FAR limits by 0.29. Further counterfactual analysis suggests that the land finance model contributes to housing affordability issues and spatial inequality in China.

Regional inequality in China's educational development: An urban-rural comparison

In the past two decades, regional inequality in China's educational development, especially between urban and rural areas, has continued to narrow. An in-depth discussion of this phenomenon and the mechanisms behind it will not only help China build a high-quality educational system, but also draw lessons from Chinese practices to guide the reduction of global educational inequality. The comprehensive evaluation results show that China's rural EDL surpassed urban EDL in 2013; in 2003–2019, the urban/rural EDL increased from 0.29 to 0.22 to 0.50 and 0.54, respectively, and the urban-rural EII decreased from 1.31 to 0.92. Spatially, urban/rural EDL in the eastern and northeastern regions is higher than that in the central and western regions, the urban-rural EII in the eastern and northeastern regions is lower than that in the central and western regions. The CV and Theil index show that regional disparity in national urban/rural EDL has been narrowing, and regional inequality in urban-rural EII has also been declining; the decomposition of the Theil index indicates that these decreases in inequality are mainly from the reduction of the urban/rural educational development gap within the regions. The large-scale population migration driven by rapid industrialization and urbanization, and the adjustment of urban-rural and regional relationship promoted by the transformation of national policies such as regional coordinated development strategy and hukou system reform, are the main reasons for the evolution of regional inequality in China's urban and rural educational development.

Income inequality among peers in China: Does internet penetration have a role?

AbstractIn the Internet age, income inequality within peer groups has raised attention. We examine the effect of Internet penetration on peer income inequality and investigate whether the Internet penetration and peer income inequality relationship can be reinforced by human capital. Using a combination of macro and microdatabases of China over the period 2010–2018, we find that peer income inequality in China generally follows a downward trend from 2010. In addition, we show that Internet penetration significantly reduces peer income inequality. Internet penetration has a negative effect on peer income inequality among those under 40 years old, while the effect is reversed among those aged 40–60. Furthermore, human capital can reinforce the links between Internet penetration and peer income inequality. Our results confirm that a mixed indicator of Internet penetration and human capital investment should be part of an active economic policy aimed at reducing peer income inequality.

Correction to “Accounting for changes in income inequality in China, 2002–2018: Evidence from household survey data”

Correction to “Accounting for changes in income inequality in China, 2002–2018: Evidence from household survey data”

Digital technology, e-commerce, and economic inequality: The case of China

This paper examines economic inequality through digital facilitated e-commerce as a new perspective. Digital development is good for output production, which can attenuate regional income inequality in China. Falling search costs with e-commerce technological progress boost more online search for better price discounts. The resulting increase in spending propensities is higher in remoter, poorer, or smaller regions, so that consumption inequality declines more than income inequality as recently observed in China. This theoretical result is consistent with our empirical finding that China's ratio of income to consumption inequality rises significantly with rapid developments in its e-commerce. Additionally, this ratio is found to decrease under wider economic openness but increase with improved transportation conditions.

Sustaining Regional Equality and Interdisciplinary integration of Arts and Sciences through Creativity Research in STEAM Education Systems

STEAM education system is largely being incorporated within different countries to develop creativity and problemsolving skills among the students. This study has also focused on sustaining regional equality and interdisciplinary integration of arts and sciences via creativity research in STEAM education systems. For this study, the qualitative data was collected from 12 science teachers working in different Chinese high schools. Thematic analysis was used for analyzing the collected interview transcripts. Four important themes were formulated which include (a) STEAM Education System, (b) Creativity in STEAM Education System, (c) STEAM Education System Issues and (d) Recommendations for STEAM Education System. The results obtained from this study showed that STEAM education system helps in encouraging student engagement, following interdisciplinary integration of arts and sciences. However, regional inequality in China prevents effective accessibility and quality of STEAM education in rural regions of the country, emphasizing the development and implementation of effective educational and regional policies. This study has also provided different practical and theoretical implications within the context of STEAM education systems.

Study on Urban-Rural Income Inequality in China—Based on VAR Model

Wealth disparity is a complex issue that has plagued the world for many years. China’s economic development has achieved world-renowned results during the last 40 years. Over that time, the country has risen from extreme poverty to the world’s second-largest economy. Nevertheless, the significant wealth inequality accompanying it has also caused great concern. At the start of China’s reform and opening-up period, government officials tacitly approved of this uneven development and made plans to “drive the rich first to the rich later” in pursuit of economic development. Economic development aims to achieve shared prosperity, not to deprive the relatively poor of wealth. As a result, wealth disparity in China must be addressed. Based on the Kuznets hypothesis, the theory of urban-rural dual structure, and the current situation in China, this paper has evaluated the current wealth gap in China. Since 1978, Chinese households’ wealth accumulation has come from the income gap. Private property was not allowed to exist during China’s planned economy period (1949-1977). After the reform and opening up period (After 1978), income disparities between various industrial sectors led to an initial round of wealth accumulation for many Chinese citizens. The industrialisation process and urbanisation rate significantly impacted China’s economic modernisation and growth. Therefore, this paper has analysed the effects of several factors on income disparity in China. The examined factors were; economic development, the urbanisation rate, and the industrialisation process. Based on the theoretical analysis, this paper selected time series data from 1978 to 2021, including; per capita GDP, the per capita disposable income of urban and rural residents, the urban population to total population ratio, and industry contribution to the GDP. First, an analysis of the impact of economic development on income inequality was conducted using a static model. Then, a VAR model was built through ADF and PP testing, and an impulse response and variance analysis were conducted to explain the impact of various factors on the change rate of income inequality. The study results indicated that (1) Economic development has resulted in a significant increase in the income of urban and rural residents. However, urban residents have benefited more. Simultaneously, the income gap between urban and rural areas has grown significantly alongside economic expansion. (2) Urbanisation showed little effect on the income gap in the short term; however, it increased it in the long term. (3) Industrialisation reduced the short- and long-term income gap while increasing urbanisation.

The impact of digital financial usage on resident’s income inequality in China: An empirical analysis based on CHFS data

This study investigates the relationship between digital financial use and resident’s income inequality based on 2019 CHFS data. We argue that digital finance usage impacts resident’s income inequality both directly and indirectly. To examine the impact of digital financial use on resident’s income inequality and explore transmission mechanisms, including differences across regions, occupations, work types, and education levels, we employ ordinary least squares. Our results reveal that digital payments, digital money management, digital funds, and credit card usage have a positive mitigating effect on resident’s income inequality. Digital financial services have a significant positive impact on resident’s income inequality in southern, northern, coastal, and inland regions. Among purely agricultural farmers, digital payments, digital money management, and credit cards' effects are more pronounced than purely non-agricultural farmers. The use of digital financial also reduces resident’s income inequality among different work types, including institutional, state-owned, self-employed, and private enterprise. Family entrepreneurship, entrepreneurial frequency, and working outside the home are important channels through which digital financial services mitigate resident’s income inequality. Digital payments and credit cards reduce resident’s wage income inequality, while digital money management and digital funds are effective in reducing resident’s property income inequality.

Influential Determinants of Income Disparity in China: An Examination Using Panel Data

Over the past few decades, the world has witnessed the economic miracle that China has achieved, but it is also worried about its rapidly increasing level of income inequality. This paper uses a panel data regression model to assess to what extent urbanization, Foreign Direct Investment (FDI), inflation, and education affect income inequality in China, using data from 25 Chinese provinces from 1995-2010. This study demonstrates that in China, the link between income inequality and urbanization aligns with the Kuznets inverted-U curve hypothesis. Meanwhile, FDI and education correlate positively with income inequality, while inflation and income inequality correlate negatively. The finding of this study argues that the policymaker in China should moderate urbanization to a certain extent, direct FDI flows to sectors that better benefit society as a whole, limit the rich's access to additional educational resources through their wealth, and use moderate expansionary monetary policy, thereby reducing income inequality while ensuring sustained economic growth.

Convergence of Inequality Dimensions in China: Income, Consumption, and Wealth from 1988 to 2018

AbstractUsing household data from 1988 to 2018, we confirm that the increase in income inequality in China has come to a halt in recent years but show that inequality in wealth and consumption continues to increase. We report a clear convergence of inequality across the different dimensions of income, consumption, and wealth. Households at the top of one dimension are increasingly located at the top of the other two dimensions. The mechanisms for such convergence across dimensions are analyzed. The savings rate links income and consumption, while capital accumulation is the central mechanism linking income and wealth. In addition, the wealth and income structure contribute to intensifying the convergence trend. We argue that the relatively high level of inequality in China may continue since income, consumption and wealth are increasingly reinforcing each other.

Research on the Impact of COVID-19 on Education Inequality in China

Educational inequality in China has been a long-standing problem, but the COVID-19 pandemic has exacerbated its impact. The sudden outbreak of COVID-19 and its extreme spread have severely impacted education systems, creating new challenges for students and educators. The shift in learning styles from classroom to distance learning and campus closures have exacerbated existing inequalities, highlighting the urgency of addressing this issue to ensure equal access to education for all students in China. By analyzing the disparate impacts of campus closures, distance learning, and access to technology on different socioeconomic statuses and regions and highlighting differences in educational opportunities, this paper explores how the COVID-19 pandemic has exacerbated educational inequalities in China's education system. COVID-19 is exacerbating educational inequality by highlighting disparities in digital access, resource availability, and learning environments, making it harder for disadvantaged groups to access equal educational opportunities.

Examine the Correlation Between the Number of Higher Education Institutions And the Provincial GDP In China

Economic inequality is a challenging affair influenced by various factors. Education has long been the topic usually raised when discussing economic inequality. This research investigates how secondary education impacts social status, mobility, and, most importantly, economic inequality nationally. This research has developed a unique methodology to investigate the relationship between the number of schools and economic inequality in China. By applying the indicator of the Gini coefficient, the distribution inequality of the number of schools in thirty-one provinces in China. This research combined studies by Liu. Y, Xu.M, and Gustafsson apply those theories to a more local context in different provinces. The results show that the number of higher education institutions positively correlates with the GDP per capita in each province, with some expectations caused by the flaw of the methodology.

Comparison and Analysis of Sustainable Development between China and America

In recent years, sustainable development has been widely discussed. This article primarily explores the reasons behind the necessity for sustainable development. The inevitable environmental degradation resulting from rapid economic development is a crucial factor. Economic development is closely tied to the demand for energy, and sustainable development reduces environmental pollution and alleviates energy shortages. The environmental benefits brought about by sustainable development, in turn, positively impact economic growth. Therefore, sustainable development is indispensable. The strategic approaches to sustainable development in China and the United States differ due to their respective national conditions. This article also delves into the disparities in the sustainable development strategies between China and the U.S. China’s sustainable development leans towards technological advancement, energy conservation, and environmental protection, while the U.S. prioritizes addressing social inequality. Post-COVID-19 pandemic, the sustainable development strategies of China and the U.S. have become increasingly apparent. The article explores what sustainable development strategies China and the U.S. have chosen post-pandemic to swiftly recover their economies. It also analyzes the characteristics of social inequality in China and the U.S., noting that China’s economic inequality is regional, whereas the economic inequality in the U.S. stems from differences in educational attainment. The article further proposes solutions for these economic inequalities. In sustainable development strategies, despite differing national conditions, addressing economic inequality is a crucial component. China requires balancing the allocation of resources across its regions, while the U.S. needs to alleviate wealth disparities resulting from educational differences and address the issue of higher education accessibility.

Twenty Years of Waves: 1999 Higher Education Expansion and Income Inequality in China

Twenty Years of Waves: 1999 Higher Education Expansion and Income Inequality in China

The role of digital financial inclusion in China on urban-rural disparities in healthcare expenditures.

The digital financial inclusion (DFI) provides opportunities to improve the relative capacity to pay for healthcare services by rural residents who are usually underserved by traditional finance in China. This paper provides empirical evidence on how the development of DFI affects the healthcare expenditure disparities between urban and rural residents. We employed the fixed effects model and instrumental variable method to estimate the impact of DFI on the Theil index of urban-rural disparities in healthcare expenditures, using panel data from 31 provinces (2011 ~ 2020) in China. We further adopted a moderating effect model to test whether the intensity of the impact would vary depending on the level of local government health expenditures. The results suggest a negative association between the development level of DFI and the urban-rural healthcare expenditure disparities in China. For every 1% increase in the DFI index, the Theil index of urban-rural disparities in healthcare expenditures would fall by 0.0013. After changing the measurement method for the dependent variable and adjusting the sample, the results remain robust. Moreover, the result of the moderating effect model indicates that, a high level of government health expenditures is conducive to the impact of DFI. Our research reveals that DFI plays an important role in bridging the urban-rural gap in healthcare expenditures. This finding provides new information for addressing the issue of urban-rural healthcare inequality in China. Chinese government needs to accelerate the construction of digital infrastructure and increase the penetration rate of digital tools in rural areas to promote the beneficial effects of DFI. Additionally, it is also necessary for local government to address the unbalanced allocation of medical resources between urban and rural areas, especially the shortage of rural human resources.

:Love Troubles: Inequality in China and Its Intimate Consequences

:<i>Love Troubles: Inequality in China and Its Intimate Consequences</i>

When Decentralization Reduces Regional Disparity: Analyzing Access to College in China

The relationship between decentralization and inequality remains puzzling. The primary objective of this paper is to study the effects of decentralization on regional education inequality in China where national higher education policies systematically prioritize large cities. We apply the Gini coefficient and the econometric model of regional convergence (i.e., Barro regressions) to study original provincial college admission data in China from 2005 to 2013. We discover that the provincial Gini coefficients have been declining throughout the period. The Barro regression results also suggest that the provincial-level college-going rates have been converging. We further demonstrate that the convergence is driven by provincial rather than national universities. Access to elite national universities remained unequal across provinces and still favored super cities. We conclude that decentralization helps to drive down the regional inequality of access to higher education that is due to national polices. It is not yet clear whether our conclusion is applicable to other policy domains or other countries.