Title

No.66-The Impact of Housing Provident Fund on Income Inequality in Urban China

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2017/7/20 2:20:52

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struggle12

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Introduction

This paper uses the China Household Income Project (CHIP), wave 2013 to identify the main beneficiaries of the housing provident fund, and investigate the impacts of the fund on income inequality in urban China. The results show that urban individuals differ significantly in their accesses to and the degrees that they involve in the fund. Particularly urban residents who work for the state-owned enterprises, in monopolistic industries, and possess managerial or professional occupations are more likely to be benefited from the fund. Furthermore, the regression-based Shapley decomposition demonstrates that the fund contributes around 7% to the overall income inequality. Its importance ranks second in all explanatory variables and is only surpassed by the education.

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