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Estimating the Redistribution Effect of Affordable Housing on Income Distribution: Case Study of Nanjing

In: Proceedings of the 23rd International Symposium on Advancement of Construction Management and Real Estate

Author

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  • Junjie Li

    (Zhengzhou University)

Abstract

During the past 20 years, China has provided large scale of government subsidized housing in order to improve the housing conditions for moderate and low-income households. In order to examine the effectiveness of housing security policy, this paper assesses the benefits and redistributive effect of affordable housing on income distribution. Hicksian income equivalent variation model (EV) is applied to measure benefits of low-income housing tenants and adopts Gini coefficient to examine the income inequality. Using a large micro dataset collected from 2011–2013 in Nanjing, this paper estimates empirically the benefits and income redistribution effect of affordable housing during three years. Empirical result shows that the provision of affordable housing can alleviate the income inequality problem. However, the result also indicates that the benefits of high-income families are often higher than that of low-income families, which generate another new inequity. It is necessary for the policy-makers to review the housing policy and some related suggestions are also put forward to improve housing policy in China.

Suggested Citation

  • Junjie Li, 2021. "Estimating the Redistribution Effect of Affordable Housing on Income Distribution: Case Study of Nanjing," Springer Books, in: Fenjie Long & Sheng Zheng & Yuzhe Wu & Gangying Yang & Yan Yang (ed.), Proceedings of the 23rd International Symposium on Advancement of Construction Management and Real Estate, pages 397-411, Springer.
    • Handle: RePEc:spr:sprchp:978-981-15-3977-0_30
    DOI: 10.1007/978-981-15-3977-0_30
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