Where You Stand Depends Upon Where You Sit: (Un)Intended Effects of Housing Demolition on Inequality Perception and Acceptance in Urban China

Abstract

This study investigated the causal effects of housing demolition on the inequality perception and acceptance of affected residents in urban China. It adopted a generalized Difference-in-Difference estimation using the China Family Panel Study data for the period 2010-2020. The findings demonstrate that those residents who experienced housing demolition and, thus, received a large compensation, perceived to be in a higher social position. However, this perception underestimated the actual improvement in social position, and with a significant time lag. Moreover, this social position improvement did not translate into a lower perception of social inequality, thus offering a contrary view to existing theoretical wisdom. By contrast, housing demolition led to a higher degree of inequality acceptance. This change in inequality acceptance was found to be consistent with self-interest thinking, although there was no evidence of the role played by meritocratic beliefs in this respect. Finally, we found that some evicted residents tended to move to more affluent neighborhoods, leading to changes in reference groups. This change counteracted the subjective perceptions of social position improvement. This study uncovered the intended and unintended psychological and political consequences arising from the state’s distinctive housing demolition initiatives, providing specific implications for policymakers to deal with urban redevelopment.

Keywords: housing demolition, social position, inequality perception, inequality acceptance, meritocratic belief