It is better to be the head of a chicken than the tail of a phoenix: a study of concern for relative standing in rural China

Fredrik Carlsson () and Ping Qin ()
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Ping Qin: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

No 308, Working Papers in Economics from Göteborg University, Department of Economics

Abstract: This paper examines the concern for relative standing among rural households in China. We use a survey-experimental method to measure to what extent poor Chinese farmers care about their relative income and find that the respondents care to a high degree. Compared to previous studies in developed countries, the concern for relative standing seems to be equally strong among rural households in China. This should be seen in the light of the rapid change China has undergone, with high growth, increased inequality, and the highest urban-rural income ratio in the world. Thus, the rural population, which is lagging behind, is suffering not only from the low absolute income but also from low relative income.

Keywords: Relative standing; China; Inequality (search for similar items in EconPapers)
JEL-codes: C93 D63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna and nep-tra
Date: 2008-05-22

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