In rural China, a significant part of household income still comes from self-produced goods for personal consumption. Often, households farm a piece of land and consume what they produce. A study on the impact of circumstances on household income distribution shows that differences in income between rural and urban residents depend more on factors individuals can influence rather than their birthplace and family background.
In 2002, 2013, and 2018, Björn Gustafsson, Professor Emeritus in Social Work at the University of Gothenburg, examined income distribution in China. Together with researchers from Canada and China, they studied the differences in the country. The study shows that the significance of external circumstances, such as birthplace, gender, age, and family conditions, decreased over the course of the study.
– This means that it became fairer in the sense that where you were born or your family background played less of a role in how much you earned, says Björn Gustafsson.
Better education and access to healthcare matter
The researchers say that the decrease is due to various societal measures implemented in the country. The government has, among other things, improved access to healthcare and education in rural areas, removed the tax on agricultural land, and eliminated fees for compulsory education. They have also introduced social safety nets, including an old-age pension.
The purpose of these measures has been to reduce income inequalities between urban and rural areas, which is also somewhat reflected in the study's results, according to the researchers.
Societal measures affect income disparities
However, income inequalities have not decreased in the country as a whole. They have increased over several years in China. Nevertheless, the research shows that income disparities increasingly depended on factors that people could influence.
The researchers argue that family background and birthplace still play a certain role for those living in rural areas but are decreasing in importance.
– Our results show that it is possible to reduce income disparities based on factors that individuals cannot control through targeted societal measures. This is an important insight for other countries striving to create a more just society, says Björn Gustafsson.
Researchers in the study:
Björn Gustafsson is a Professor Emeritus at the Department of Social Work, University of Gothenburg.
bjorn.gustafsson@socwork.gu.se
Terry Sicular is a Professor Emerita at the Department of Economics, Western University, London, Ontario, Canada, and also affiliated with the SOAS China Institute, University of London, UK.
sicular@uwo.ca
Xiuna Yang has a Ph.D. in Economics from Beijing Normal University, China. She works as a Program Officer at the China Development Research Foundation.
yangxiuna2005@163.com
