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Social Benefits in Urban China: Determinants and Impact on Income Inequality in 1988 and 2002

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  • Qin Gao

Abstract

This study provides the first set of empirical evidence on the determinants of social benefits received by urban families in China and the impact on income inequality using the China Household Income Project (CHIP) 1988 and 2002 data. It finds that the total urban social benefits strongly targeted the bottom pre-tax pre-transfer income decile. Cash transfers were negatively associated with income distribution in both years, while important in-kind benefits (namely health and food in 1988 and education in 2002) were positively related to income levels.

Suggested Citation

  • Qin Gao, 2006. "Social Benefits in Urban China: Determinants and Impact on Income Inequality in 1988 and 2002," WIDER Working Paper Series RP2006-117, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-117
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2006-117.pdf
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    References listed on IDEAS

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    1. Fang, Cheng & Zhang, Xiaobo & Fan, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, vol. 13(4), pages 430-443, December.
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    3. Wu, Ximing & Perloff, Jeffrey M., 2004. "China's Income Distribution Over Time: Reasons for Rising Inequality," Institute for Research on Labor and Employment, Working Paper Series qt9jw2v939, Institute of Industrial Relations, UC Berkeley.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    5. Xin Meng, 2004. "Economic Restructuring and Income Inequality in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 357-379, September.
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