The research paper “Higher-order income risk, income mobility and inequality” by researcher Zou Jianwen from IIDPF was published in the 1st issue 2024 of China Economic Quarterly.
Abstract
This paper proves the existence and heterogeneity of higher-order income risk and examines the impact of higher-order income risk on income mobility and inequality. The results indicate that optimizing the income shock structure and eliminating higher-order income risk improves income mobility, reduces the risk of income stagnation for lower-income groups, and reduces consumption inequality and wealth inequality. Therefore, the government needs, first, to preserve employment and reduce labor market frictions, protect workers from extreme income shocks such as unemployment, and second, to further improve the vocational training system and career advancement system to reduce the risk of workers slipping down the career ladder.
Brief Bio
Zou Jianwen, a full-time researcher at IIDP, holds a Ph.D. in Economics from Huazhong University of Science and Technology. His research fields include consumption and investment, with a focus on structural estimation studies. He has published papers in journals including Economic Research Journal, China Economic Quarterly, and Economic Perspectives. He was awarded the 18th Zhang Peigang Outstanding Doctoral Dissertation Award and has chaired various projects including the youth project of the National Natural Science Foundation of China, the youth project of the Ministry of Education Foundation on Humanities and Social Sciences, the general project of the China Postdoctoral Science Foundation, and the Young Teachers Academic Innovation Program of ZUEL.
About China Economic Quarterly
China Economic Quarterly, established in October 2001, is a comprehensive economics journal managed by Peking University, sponsored by the China Center for Economic Research at Peking University, and published by Peking University Press. The journal provides a focal point for communication within the Chinese economic community and aims to pave the way for the development of Chinese economics to reach the global stage. China Economic Quarterly, employs internationally standardized methods to study economic phenomena in China, upholds the principal “study China’s economic achievements—particularly as China becomes the world’s largest economy” and aims to provide a high-level publication platform for the research of Chinese economists.