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The Increasing Inequality of Wealth in China, 2002-2013

Author

Listed:
  • John Knight
  • LI Shi
  • WAN Haiyuan

Abstract

The inequality of wealth in China has increased rapidly in recent years. Prior to 1978 all Chinese households possessed negligible wealth. China therefore presents a fascinating case study of how inequality of household wealth increases as economic reform takes place, marketisation occurs, and capital accumulates. Wealth inequality and its growth are measured and decomposed using data from two national sample surveys of the China Household Income Project (CHIP) relating to 2002 and 2013. Techniques are devised and applied to measure the sensitivity of wealth inequality to plausible assumptions about under-representation of and under-reporting by the wealthy. An attempt is made to explain the rising wealth inequality in terms of the relationships between income and wealth, house price inflation, differential saving, and income from wealth.

Suggested Citation

  • John Knight & LI Shi & WAN Haiyuan, 2016. "The Increasing Inequality of Wealth in China, 2002-2013," Economics Series Working Papers 816, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:816
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    References listed on IDEAS

    as
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    3. Gustafsson,Björn A. & Shi,Li & Sicular,Terry (ed.), 2008. "Inequality and Public Policy in China," Cambridge Books, Cambridge University Press, number 9780521870450, January.
    4. Björn Gustafsson & Li Shi & Wei Zhong, 2006. "The Distribution Of Wealth In Urban China And In China As A Whole In 1995," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(2), pages 173-188, June.
    5. Shi Li & Renwei Zhao, 2007. "Changes in the Distribution of Wealth in China 1995-2002," WIDER Working Paper Series RP2007-03, World Institute for Development Economic Research (UNU-WIDER).
    6. Terry McKinley, 1993. "The Distribution of Wealth in Rural China," Palgrave Macmillan Books, in: Keith Griffin & Zhao Renwei (ed.), The Distribution of Income in China, chapter 4, pages 116-134, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Wei Zheng & Zining Liu & Ruo Jia, 2019. "How private sector participation improves retirement preparation: A case from China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 123-147, January.
    2. Thomas Piketty & Li Yang & Gabriel Zucman, 2019. "Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015," American Economic Review, American Economic Association, vol. 109(7), pages 2469-2496, July.
    3. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2021. "The great Chinese inequality turnaround," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 467-482.
    4. Shi Li & Haiyuan Wan & Qinghai Li, 2018. "Top incomes in China: Data collection and the impact on income inequality," WIDER Working Paper Series 183, World Institute for Development Economic Research (UNU-WIDER).
    5. Li, Qinghai & Li, Shi & Wan, Haiyuan, 2020. "Top incomes in China: Data collection and the impact on income inequality," China Economic Review, Elsevier, vol. 62(C).
    6. Ceglarz, Andrzej & Beneking, Andreas & Ellenbeck, Saskia & Battaglini, Antonella, 2017. "Understanding the role of trust in power line development projects: Evidence from two case studies in Norway," Energy Policy, Elsevier, vol. 110(C), pages 570-580.

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    More about this item

    Keywords

    China; wealth inequality and its decomposition; top-tail income c;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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