scholarly journals Difference in Housing Finance Usage and Its Impact on Housing Wealth Inequality in Urban China

Land ◽  
2021 ◽  
Vol 10 (12) ◽  
pp. 1404
Author(s):  
Shan Yu ◽  
Can Cui
Keyword(s):  
Wealth Inequality ◽  
Urban China ◽  
Wealth Accumulation ◽  
Housing Wealth ◽  
Asset Accumulation ◽  
Urban Hierarchy ◽  
Household Asset ◽  
Financing Channels ◽  
Spatial Stratification

With the increasing importance of financial loans in home purchases in urban China, the role of housing loans in the accumulation of housing wealth needs to be unraveled. Using the data from the 2017 China Household Finance Survey (CHFS), this study investigates the use of housing loans and their impact on housing wealth inequality. It has been found that people with higher socioeconomic status and institutional advantages benefit more from housing provident fund loans and are more likely to fully invoke different financing channels to accumulate housing wealth. On the contrary, disadvantaged groups have to resort to costly market-based mortgages to finance their home purchases. This leads them to fall further behind in housing wealth accumulation. The spatial stratification of housing wealth accompanying the urban hierarchy was also observed and found to be closely linked to the type of housing loans. In this increasingly financialized era, relying on financial instruments in the process of household asset accumulation may further amplify the existing wealth inequality among social groups.

Housing wealth and household consumption in urban China

Urban Studies ◽  
2019 ◽  
Vol 57 (8) ◽  
pp. 1714-1732
Author(s):  
Zekai He ◽  
Jingjing Ye ◽  
Xiuzhen Shi
Keyword(s):  
Causal Effect ◽  
Household Survey ◽  
Household Consumption ◽  
Urban China ◽  
Housing Wealth ◽  
Data Set ◽  
Marginal Propensity To Consume ◽  
Home Value ◽  
Marginal Propensity

Using a large Chinese household survey data set, we investigate the effect of home value appreciation on urban household consumption. The paper identifies the causal effect of housing wealth using both Two-Stage Least Squares (2SLS) estimates and regression discontinuity designs. The research demonstrates that the housing boom in China has resulted in higher consumption and that a 10% increase in home wealth raises overall consumption by approximately 3%. The average marginal propensity to consume out of housing wealth is about 5 cents with substantial heterogeneity across household characteristics. The findings highlight the role of mortgage debts, health insurance, education and risk preference in explaining the variation in household consumption. Our results persist when we adopt different proxies for housing wealth.

scholarly journals Housing wealth inequality in urban China: the transition from welfare allocation to market differentiation

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Chunling Li ◽  
Yiming Fan
Keyword(s):  
Social Stratification ◽  
Wealth Inequality ◽  
Market Transition ◽  
Urban China ◽  
Housing Wealth ◽  
Market Mechanisms ◽  
Social Survey ◽  
Institutional Effect ◽  
New Perspective ◽  
Housing Assets

Abstract The differentiation of housing assets is an important embodiment of wealth inequality and is also an important dimension of social stratification. The housing distribution in China has experienced a transition from welfare allocation to market distribution over the decades. This process has led to a change in the housing stratification mechanism and widened housing wealth inequality, which has evoked theoretical disputes about “market transition,” “power persistence,” and “power derivation.” Based on the 2017 Chinese Social Survey (CSS), this article examines the housing wealth inequality in urban China and probes the major drivers of housing stratification. The results suggest that with the progress of housing marketization, market mechanisms have replaced the original socialist redistribution mechanisms and have become the major drivers of housing wealth inequality. However, some of the original socialist institutional arrangements continue to have strong effects on housing wealth inequality. The persisting institutional effect may provide a new perspective for exploring housing wealth inequality in contemporary urban China.

scholarly journals Housing wealth accumulation: The role of public housing

2016 ◽  
Vol 57 ◽  
pp. 12-22 ◽  
Author(s):  
Florence Goffette-Nagot ◽  
Modibo Sidibé
Keyword(s):  
Public Housing ◽  
Wealth Accumulation ◽  
Housing Wealth

scholarly journals Wealth, Top Incomes, and Inequality

2017 ◽  
Author(s):  
Frank Cowell ◽  
Brian Nolan ◽  
Javier Olivera ◽  
Philippe Van Kerm
Keyword(s):  
Life Cycle ◽  
Wealth Inequality ◽  
Housing Wealth ◽  
Joint Distributions ◽  
Top Incomes ◽  
The Us ◽  
Top Income Shares ◽  
Key Concepts ◽  
Life Cycle Patterns

Although it is heartening to see wealth inequality being taken seriously, key concepts are often muddled, including the distinction between income and wealth; what is included in ‘wealth’; and facts about wealth distributions. This chapter highlights issues that arise in making ideas and facts about wealth inequality precise, and employs newly available data to take a fresh look at wealth and wealth inequality in a comparative perspective. The composition of wealth is similar across countries, with housing wealth being the key asset. Wealth is considerably more unequally distributed than income, and it is distinctively so in the US. Extending definitions to include pension wealth, however, reduces inequality substantially. Analysis also sheds light on life-cycle patterns and the role of inheritance. Discussion of the joint distributions of income and wealth suggests that interactions between increasing top-income shares and the concentration of wealth and income from wealth towards the top are critical.

scholarly journals The distribution of wealth in Spain and the USA: the role of socioeconomic factors

SERIEs ◽  
2021 ◽  
Author(s):  
Pedro Salas-Rojo ◽  
Juan Gabriel Rodríguez
Keyword(s):  
Socioeconomic Factors ◽  
Parental Education ◽  
Wealth Inequality ◽  
Latent Factors ◽  
Distribution Of Wealth ◽  
The Usa ◽  
Value Decomposition ◽  
Counterfactual Decomposition ◽  
Distribution Of Income

AbstractThe literature has typically found that the distribution of socioeconomic factors like education, labor status and income does not account for the remarkable wealth inequality disparities between countries. As a result, their different institutions and other latent factors receive all the credit. Here, we propose to focus on one type of wealth inequality, the inequality of opportunities (IOp) in wealth: the share of overall wealth inequality explained by circumstances like inheritances and parental education. By means of a counterfactual decomposition method, we find that imposing the distribution of socioeconomic factors of the USA into Spain has little effect on total, financial and real estate wealth inequality. On the contrary, these factors play an important role when wealth IOp is considered. A Shapley value decomposition shows that the distribution of education and labor status in the USA consistently increase wealth IOp when imposed into Spain, whereas the opposite effect is found for the distribution of income.

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