Study On Property Income Inequality In Urban Area Of China And The Effect Of Urban Housing Reform

In recent years,the property income of Chinese urban residents has been growing rapidly,but the income inequality situation is still getting worse.The property income has a significant impact on income inequality.Based on the urban household survey data from Chinese Household Income Project(CHIP)in the year of 1988,1995,2002,2007 and 2013,this article analyzes the property income inequality in urban area of China and the effect of urban housing reform.Firstly,this paper studies the levels,distribution,and changes of property income and its contribution to income inequality.The source decomposition method is used to decompose the total income Gini coefficient of each year into four categories of income,we find that the Gini coefficient of property income is the highest,which has an increasingly important impact on the income inequality.This paper also focuses on the impact of the internal structure of property income,household characteristics and housing reform on property income.The result shows that investment benefit and housing rent have become two major internal factors that affect the property income inequality.From the result of OLS estimation,we find that highly educated people have more advantages in obtaining property income,and there are more channels for residents who live in developed areas to increase their property income,what is more,occupation and working unit ownership also affect the property income.The regression results of pooled cross-section DID(Difference in Difference)estimation show that the households who can benefit from the housing reform has the advantage to accumulate more wealth,so as to obtain more property income.The policy to increase urban residents' property income should be more inclined to low-income groups:by vigorously supporting the economic and education development of poor areas,promoting the development of capital markets to encourage low-income people to participate moderately and improving welfare housing system.It is very important to control the irrational growth and structural imbalance of property income,therefore,making property income the proper way for residents to raise living standards and share the achievements of economic development.