Rising Inequalities in Income and Health in China: Who is Left Behind?

Tinbergen Institute Discussion Paper 12-091/V

37 Pages Posted: 11 Sep 2012

See all articles by Steef Baeten

Steef Baeten

affiliation not provided to SSRN

Tom Van Ourti

Erasmus University Rotterdam (EUR); Tinbergen Institute

Eddy van Doorslaer

Erasmus School of Economics

Date Written: June 13, 2012

Abstract

During the last decades, China has experienced double-digit economic growth rates and rising inequality. This paper implements a new decomposition on the China Health and Nutrition Panel Survey (1991-2006) to examine the extent to which changes in level and distribution of incomes and in income mobility are related to health disparities between rich and poor. We find that health disparities in China relate to rising income inequality and in particular to the adverse health and income experience of older (wo)men, but not to the growth rate of average incomes over the last decades. These findings suggest that replacement incomes and pensions at older ages may be one of the most important policy levers in combating health disparities between rich and poor Chinese.

Keywords: China, income growth, income inequality, income mobility, health inequality

JEL Classification: C00, D30, D63, I14, I15

Suggested Citation

Baeten, Steef and Van Ourti, Tom and van Doorslaer, Eddy, Rising Inequalities in Income and Health in China: Who is Left Behind? (June 13, 2012). Tinbergen Institute Discussion Paper 12-091/V, Available at SSRN: https://ssrn.com/abstract=2144244 or http://dx.doi.org/10.2139/ssrn.2144244

Steef Baeten (Contact Author)

affiliation not provided to SSRN ( email )

Tom Van Ourti

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Eddy Van Doorslaer

Erasmus School of Economics ( email )

Netherlands

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