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Population ageing and inequality: Evidence from China

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  • Xudong Chen
  • Bihong Huang
  • Shaoshuai Li

Abstract

Population ageing has significant economic and social costs, and this paper studies its impacts on inequality, both theoretically and empirically. First, we build a two‐period overlapping generation model with uncertain lifetime and find that population ageing has the overall effect of increasing income and consumption inequality within the society. For empirical analysis, we use household data from China Health and Nutrition Survey to assess the age effect on income and consumption inequality in China, and confirm the results predicted by the theoretical model.

Suggested Citation

  • Xudong Chen & Bihong Huang & Shaoshuai Li, 2018. "Population ageing and inequality: Evidence from China," The World Economy, Wiley Blackwell, vol. 41(8), pages 1976-2000, August.
    • Handle: RePEc:bla:worlde:v:41:y:2018:i:8:p:1976-2000
    DOI: 10.1111/twec.12551
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    Cited by:

    1. Hanewald, Katja & Jia, Ruo & Liu, Zining, 2021. "Why is inequality higher among the old? Evidence from China," China Economic Review, Elsevier, vol. 66(C).
    2. Joyce Hsieh, 2023. "Population aging and wealth inequality," Economic Change and Restructuring, Springer, vol. 56(6), pages 4223-4252, December.
    3. Barhoom Faeyzh, 2023. "Revisiting the Financial Development and Income Inequality Nexus: Evidence from Hungary," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 11(1), pages 227-257, October.
    4. Prabatha, Tharindu & Karunathilake, Hirushie & Mohammadpour Shotorbani, Amin & Sadiq, Rehan & Hewage, Kasun, 2021. "Community-level decentralized energy system planning under uncertainty: A comparison of mathematical models for strategy development," Applied Energy, Elsevier, vol. 283(C).
    5. Xiao Yan & Saidatulakmal Mohd, 2023. "Trends and Causes of Regional Income Inequality in China," Sustainability, MDPI, vol. 15(9), pages 1-18, May.
    6. Regina Pleninger & Jakob de Haan & Jan‐Egbert Sturm, 2022. "The ‘Forgotten’ middle class: An analysis of the effects of globalisation," The World Economy, Wiley Blackwell, vol. 45(1), pages 76-110, January.
    7. Sunhyung Min, 2023. "Demographic Change and Inequality in the Korean Farm Income," Agriculture, MDPI, vol. 13(9), pages 1-14, September.

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