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Income inequality and access to housing: Evidence from China

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  • Zhang, Chuanchuan

Abstract

Economic theory suggests that income inequality predicts housing price and housing affordability for low-income households. Employing Chinese urban household survey data, this paper examines empirically the relationship between income inequality and access to housing for urban low-income households. The empirical results demonstrate that higher income inequality within cities is significantly related to a higher housing cost burden, a smaller per capita living space, and lower housing quality for low-income households. Further studies demonstrate that the negative impacts of income inequality could be moderated by product differentiation in housing markets, as a higher degree of differentiation in the size of housing units corresponds to a smaller effect of income inequality on housing affordability.

Suggested Citation

  • Zhang, Chuanchuan, 2015. "Income inequality and access to housing: Evidence from China," China Economic Review, Elsevier, vol. 36(C), pages 261-271.
    • Handle: RePEc:eee:chieco:v:36:y:2015:i:c:p:261-271
    DOI: 10.1016/j.chieco.2015.10.003
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    References listed on IDEAS

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    Cited by:

    1. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2021. "The great Chinese inequality turnaround," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 467-482.
    2. Chen, W.D., 2016. "Policy failure or success? Detecting market failure in China's housing market," Economic Modelling, Elsevier, vol. 56(C), pages 109-121.
    3. repec:zbw:bofitp:2017_006 is not listed on IDEAS
    4. Guanghua Wan & Ting Wu & Yan Zhang, 2018. "The Decline of Income Inequality in China: Assessments and Explanations," Asian Economic Papers, MIT Press, vol. 17(3), pages 115-140, Fall.
    5. Ali Bokhari & Farahnaz Sharifi, 2023. "Simultaneous Inequity of Elderly Residents in Melbourne Metropolitan," Sustainability, MDPI, vol. 15(3), pages 1-17, January.
    6. Mingzhi Hu & Zhenguo Lin & Yingchun Liu, 2024. "Housing Disparity between Homeowners and Renters: Evidence from China," The Journal of Real Estate Finance and Economics, Springer, vol. 68(1), pages 28-51, January.
    7. Chen, Y. & He, M. & Rudkin, S., 2017. "Understanding Chinese provincial real estate investment: A Global VAR perspective," Economic Modelling, Elsevier, vol. 67(C), pages 248-260.
    8. Xiaoguang Liu & Jian Yu & Tsun Se Cheong & Michal Wojewodzki, 2022. "The Future Evolution of Housing Price-to-Income Ratio in 171 Chinese Cities," Annals of Economics and Finance, Society for AEF, vol. 23(1), pages 159-196, May.
    9. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2021. "The great Chinese inequality turnaround," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 467-482.
    10. Felix Aubele & Pio Baake & Tomaso Duso & Konstantin A. Kholodilin & Linus Pfeiffer & Caroline Stiel, 2023. "Wohnkosten, Lebenszufriedenheit, Sicherheitsempfinden und Narrative: eine Betrachtung der langfristigen Verteilungswirkungen von Wohnungsmarktzyklen (WLSN); Abschlussbericht," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 127, number pbk199.
    11. Jiawen Huang & Yitong Fang, 2021. "Income Inequality, Neighbourhood Social Capital and Subjective Well-Being in China: Exploration of a Moderating Effect," IJERPH, MDPI, vol. 18(13), pages 1-18, June.
    12. Bortolotti, Luca & Biggeri, Mario, 2022. "Is the slowdown of China's economic growth affecting multidimensional well-being dynamics?," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 478-489.
    13. Duan, Zhengyu & Zhao, Haoran & Li, Zhenming, 2023. "Non-linear effects of built environment and socio-demographics on activity space," Journal of Transport Geography, Elsevier, vol. 111(C).
    14. Gómez Tello, Alicia & Murgui García, Mª Jesús & Sanchís Llopis, M. Teresa, 2019. "Exploring the recent upsurge of regional inequality in Europe," IFCS - Working Papers in Economic History.WH 28775, Universidad Carlos III de Madrid. Instituto Figuerola.
    15. Jiafeng Gu & Xing Ming, 2021. "The Influence of Living Conditions on Self-Rated Health: Evidence from China," IJERPH, MDPI, vol. 18(17), pages 1-15, August.
    16. Abebe Hailemariam & Sefa Awaworyi Churchill & Russell Smyth & Kingsley Tetteh Baako, 2021. "Income inequality and housing prices in the very long‐run," Southern Economic Journal, John Wiley & Sons, vol. 88(1), pages 295-321, July.

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    More about this item

    Keywords

    Income inequality; Access to housing; Low-income households; Urban China;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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