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New integrated concepts and measures of income poverty and of 'common prosperity' in China

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  • John Knight
  • Li Shi
  • Wan Haiyuan

Abstract

With incomes rising rapidly in China, measures of numbers in absolute poverty are no longer helpful for policy. A case is made for introducing a new concept and measure of relative poverty in China. Support is found from estimates of happiness functions using the 2013 national surveys of the China Household Income Project (CHIP). The Chinese government has recently introduced a new policy of promoting ‘common prosperity’. The criteria for measuring progress towards the achievement of common prosperity are analysed. A case is made for integrating the concepts of relative poverty and of common prosperity, so that households can be classified as poor, commonly prosperous, or rich. That classification is made for the 2002, 2013, and 2018 CHIP surveys.

Suggested Citation

  • John Knight & Li Shi & Wan Haiyuan, 2023. "New integrated concepts and measures of income poverty and of 'common prosperity' in China," CSAE Working Paper Series 2023-14, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2023-14
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    References listed on IDEAS

    as
    1. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    2. Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-169, July.
    3. Knight, John & Gunatilaka, Ramani, 2012. "Income, aspirations and the Hedonic Treadmill in a poor society," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 67-81.
    4. Knight, John & Gunatilaka, Ramani, 2022. "Income inequality and happiness: Which inequalities matter in China?," China Economic Review, Elsevier, vol. 72(C).
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