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A Summary of Retail Investors and Momentum

Jun Du, Dashan Huang, Jane Yu Liu, Yushui Shi, Avanidhar Subrahmanyam, Huacheng Zhang, Oct 26, 2022

We explore the link between momentum and retail investing via an identification strategy in China, where retail investors dominate. We propose that due to a round lot restriction, small retail investors are less likely to hold and trade stocks with high nominal prices, and find supporting evidence.

Unequal Transition: The Widening Wealth Gap amidst China’s Rapid Growth

Yangtian Jiang, Yu Zheng, Lijun Zhu, Nov 08, 2023

We examine the drivers of rising wealth inequality in urban China since 1995. We highlight the intertwined nature of growth and equity during China’s transition toward a market-oriented economy.

China’s New Goal for Income Distribution: What Does it Mean and are There Tradeoffs?

Martin Ravallion, Shaohua Chen, Mar 16, 2022

China’s political leadership recently committed to expanding the proportion of middle-income groups to create a less polarised, and more ‘olive-shaped’, distribution of wealth. This column considers the potential trade-offs between reducing income polarisation and other goals, including poverty reduction.

“I Still Haven’t Found What I’m Looking For”: Evidence of Directed Search from a Field Experiment

Haoran He, David Neumark, Qian Weng, Jun 16, 2021

We explore the impact of wage offers on job applications, testing implications of the directed search model and trying to distinguish it from random search. We use a field experiment conducted on an online Chinese job board, with real jobs for which we randomly varied the wage offers across three ranges. We find that higher wage offers raise application rates overall, which is consistent with directed search...

The Fertility Consequences of Air Pollution in China

Xuwen Gao, Ran Song, Christopher Timmins, Sep 07, 2022

We incorporate pollution exposure into Becker’s Quantity-Quality (Q-Q) model of fertility and evaluate how air pollution distorts individuals’ fertility behaviors in China. We find that increased pollution over time negatively affects the fertility of ethnic Han people, but does not affect the fertility of ethnic minorities. China’s One-Child Policy increased Han people’s demand for child quality (e.g., health status and education achievement), which can explain the negative association between pollution and fertility for Han people.