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Migration, population aging, and income inequality in China

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  • Zhan, Peng
  • Ma, Xinxin
  • Li, Shi

Abstract

In this study, we examine the effects of four demographic factors, namely, birth, death, natural aging, and net migration, on population aging and income inequality in China. We use the official Chinese data and the China Household Income Project Survey data for the 2007–2013 period and apply a decomposition model based on the Shapley method. Unlike previous studies, we include migration in our decomposition model and find that natural aging is the primary factor contributing to population aging in both urban and rural areas. Further, migration may accelerate population aging in rural areas. Moreover, migration contributes to reducing income inequality in urban areas, while widening income inequality in rural areas. The effect of migration is larger than those of birth, death, and natural aging on income inequality. The robustness checks confirm these conclusions.

Suggested Citation

  • Zhan, Peng & Ma, Xinxin & Li, Shi, 2021. "Migration, population aging, and income inequality in China," Journal of Asian Economics, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:asieco:v:76:y:2021:i:c:s1049007821000804
    DOI: 10.1016/j.asieco.2021.101351
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    More about this item

    Keywords

    Migration; Demographic factor; Population aging; Income inequality; China;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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