Growing Apart: Declining Within- and Across-Locality Insurance in Rural China

Orazio Attanasio, Costas Meghir, Corina Mommaerts and Yu Zheng

No 30143, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We consider risk sharing in rural China during its rapid economic transformation from the late 1980s through the late 2000s. We document an erosion of consumption insurance against both household-level idiosyncratic and village-level aggregate income shocks, and show that this decline is related to observable economic changes: the shift out of agriculture, the decline of publicly owned Township-and-Village Enterprises, and increased migrant work. Further evidence suggests that as these changes took place at the village level, higher levels of government failed to offset these effects through the tax-and-transfer system, leaving households more exposed to both idiosyncratic and village-aggregate risk.

JEL-codes: D12 E21 O12 P25 (search for similar items in EconPapers)
Date: 2022-06
New Economics Papers: this item is included in nep-agr, nep-cna, nep-dem, nep-ias and nep-mac
Note: DEV EFG PE
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Related works:
Journal Article: Growing apart: Declining within- and across-locality insurance in rural China (2025)
Working Paper: Growing Apart: Declining Within- and Across-Locality Insurance in Rural China (2021)
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