Housing Marketization Housing Marketization Reform Reform

and Social Classand Social Class

LI, YuSurvey Research Laboratory, Institute of Sociology,

Shanghai Academy of Social Sciences, Shanghai, China;

LU, Hanlong Institute of Sociology, Shanghai Academy of Social

Sciences, Shanghai, China

Housing Distribution in Market Housing Distribution in Market TransitionTransition

• The changing mechanisms during the market transition– Market transition debate

• market transition theory• power persistence theory

– House inequality • Market societies

– Commodity– Class phenomenon

• State redistributive societies– Welfare item – Majority people vs. elites– Inequality between work-units

Social class in Housing Marketization Social class in Housing Marketization ReformReform

• Research Question:

– To what extent has China’s urban housing been transformed into a system in which housing distribution is a function of social class differentiation?

– Who got more?– Cadre vs. manger

Housing Marketization ReformHousing Marketization Reform

• Three phases

– Pilot experiment : 1978-1991– Double track: 1992-1998– Full marketization: 1999 –

(Li & Yi 2007)

DataData

• Residential relocation and urban restructuring: A Multi-city study of urban

China

– Shanghai 2005/6– Urban area– 2000 cases– Housing history data

Variables and MeasurementVariables and Measurement

• Measuring House inequality– Chance to get a house– House size– House quality

• Index1– Toilet (have=1, share / no =0)– Kitchen (have=1, share / no =0)– Balcony (have=1, share / no =0)

• Index2– Year of house built (after 1990=1)– Location: (central area=1)– House type (townhouse, apartment

=1)

– Value of the house

Variables and MeasurementVariables and Measurement

• Social Class– Cadre:

• High & Middle rank officials in Gov. & Non-Profit Institution (Chu & above)

– Mangers in SOE• High-rank Mangers in State-Owned

Enterprises

– Mangers in market sector– Professional – Routine non-manual– Skilled manual worker– Non-skilled manual worker

Variables and MeasurementVariables and Measurement

• Control variables– TVCs (Time Varying Covariates)

• Age & Age square• Work-Unit type

– Government agency & Non-profit institution

– State/Collective enterprise (Reference group)

– Market Sector

• Family size• Marriage status (Married =1)• Location of the house (central area=1)

– Others (Not TVC)• Education (year of schooling) • Party Membership (CCP=1)• Hu Kou (Migrants=1)

Preliminary ResultPreliminary Result

Cox regression on getting a houseCox regression on getting a house

OLS Regression of housing size (Ln)OLS Regression of housing size (Ln)

OLS Regression of housing Quality index1OLS Regression of housing Quality index1

OLS Regression of Housing Quality index2OLS Regression of Housing Quality index2

• Social Class

OLS regression of Current House Value OLS regression of Current House Value (Ln)(Ln)

ConclusionConclusion

• housing inequality in full-Marketization phase– Clear pattern

• Hierarchy of social occupational class

– inconsistent results on who get more • Both get rewarded• Cadre < manger ?

– More careful analysis is needed

Q & AQ & A