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Measuring the Level and Inequality of Wealth: An Application to C hina
Author(s) -
Ward Patrick
Publication year - 2014
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12063
Subject(s) - economics , inequality , asset (computer security) , welfare , income distribution , socioeconomic status , economic inequality , distribution (mathematics) , labour economics , household income , demographic economics , sociology , market economy , geography , mathematical analysis , population , demography , mathematics , computer security , archaeology , computer science
We construct and compare three distinct measures of household asset wealth that complement traditional income‐ or expenditure‐based measures of socioeconomic status. We apply these measures to longitudinal household survey data from C hina and demonstrate that household asset wealth has been increasing over time, a theme consistent with many previous studies on the process of development in C hina. Unlike other studies that have shown rising income inequality over time, however, we show that asset wealth inequality has actually been declining in recent years, indicating widespread participation in the benefits of economic reforms. Furthermore, the evolution in the cumulative distribution of household welfare is such that social welfare has been increasing with the passage of time, despite rising inequality in the early years of the survey.