Change of Housing Inequality in Urban China and Its Decomposition: 1989-2011

Housing inequality is a common phenomenon all over the world but also demonstrate discrepant tinctures across different countries. Using the data from the China Health and Nutrition Surveys, we depict a comprehensive, dynamic, and complex picture of housing inequality in urban China from 1989 to 2011, with household as the unit of analysis. Analytic results from calculation of housing Gini coefficients and delineation of housing Lorenz curves suggest that the trend of housing space inequality was steady with a somewhat increase, while that of housing wealth inequality has firstly decreased and then increased. Through further decomposition on the change of housing inequality with a pioneering use of MM decomposition method, we find that the change of the composition of household characteristics only could explain few about the change of housing inequality, while the classification mechanism formed by returns from household characteristics plays a key role in both the change of housing space inequality and that of housing wealth inequality.