Catching Up with the West: Chinese Pathways to the Global Middle Class

31 Pages Posted: 21 May 2019 Last revised: 18 Nov 2021

See all articles by Björn Gustafsson

Björn Gustafsson

University of Gothenburg - Department of Social Work; IZA Institute of Labor Economics

Xiuna Yang

Beijing Normal University (BNU) - School of Economics and Business Administration

Terry Sicular

University of Western Ontario - Department of Economics

Abstract

We investigate whether Chinese household incomes have caught up to those of the middle class in the developed world. Using nationwide survey data for 2002 and 2013, we find considerable catch up. Defining the global middle class as being neither poor nor rich in the developed world, we estimate that China's global middle class grew rapidly after 2002, reaching 250 million in 2013. We describe the characteristics of this middle class, which is predominately urban, in the eastern region, and wage-earning. A distinct business middle class exists but is relatively small. Analysis of the chances of attaining the middle class reveals the importance of an individual's circumstances at birth. Parents' education and occupation matter. Being born with an urban hukou provides a large advantage. For those born with a rural hukou, the most effective pathways to the middle class are migration and, if possible, obtaining an urban hukou.

Keywords: income distribution, middle class, China, economic mobility

JEL Classification: D31, P36

Suggested Citation

Gustafsson, Bjorn and Yang, Xiuna and Sicular, Terry, Catching Up with the West: Chinese Pathways to the Global Middle Class. IZA Discussion Paper No. 12345, Available at SSRN: https://ssrn.com/abstract=3390339

Bjorn Gustafsson (Contact Author)

University of Gothenburg - Department of Social Work ( email )

Göteborg
Sweden
+46 31-773-1890 (Phone)
+45 31-773-1888 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Xiuna Yang

Beijing Normal University (BNU) - School of Economics and Business Administration ( email )

No.19 Xinwai Str
Haidian District
Beijing, 100875
China

Terry Sicular

University of Western Ontario - Department of Economics ( email )

Social Science Centre
London, Ontario N6A 5C2
Canada

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
65
Abstract Views
419
Rank
618,039
PlumX Metrics