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Growing Apart: Declining Within- and Across-Locality Insurance in Rural China / Orazio Attanasio, Costas Meghir, Corina Mommaerts, Yu Zheng.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Attanasio, Orazio.
Contributor:
National Bureau of Economic Research.
Meghir, Costas.
Mommaerts, Corina.
Zheng, Yu.
Series:
Working Paper Series (National Bureau of Economic Research) no. w30143.
NBER working paper series no. w30143
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2022.
Summary:
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 from agriculture to wage employment, 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.
Notes:
Print version record
June 2022.

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