Ownership Restructuring, Marketization and Wealth Inequality in Urban China: 1995 and 2002

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This paper proposes a property transformation perspective to examine the mechanisms of wealth accumulation and wealth inequality creation during China’s post-1978 transformation. It examines how enterprise ownership restructuring,marketization and state politics have resulted in greater wealth inequality between cadres and ordinary workers,between public sectors/organizations and private sectors/organizations.Mainly drawing on data from the Chinese Household Income Project conducted in 1995 and 2002,we find that the property transformation process has created greater wealth disparity among different occupational groups and among those working in different work organizations since the mid-1990s. However,it is inconclusive whether non-housing wealth or total household wealth are increasing at the same pace across different occupations and work organizations with the growing market penetration and the spread of privatization. This paper proposes a property transformation perspective to examine the mechanisms of wealth accumulation and wealth inequality creation during China’s post-1978 transformation. It examines how enterprise ownership restructuring, marketization and state politics have resulted in greater wealth inequality between cadres and ordinary workers, between public sectors / organizations and private sectors / organizations. Main drawing on data from the Chinese Household Income Project conducted in 1995 and 2002, we find that the property transformation process has created greater wealth disparity among different occupational groups and among those jobs in different work organizations since the mid-1990s. However, it is inconclusive whether non-housing wealth or total household wealth are increasing at the same pace across different occupations and work organizations with the growing market penetration and the spread of privatization.
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