Study on the Signal Effects and Mechanism of Rural Income Inequality in Chinese
WANG Xiaoye1, WANG Wenbo1, ZHANG Weili2
1. School of Economics, Henan University of Economics and Law, Zhengzhou 450046, China; 2. School of Urban and Rural Planning, Henan University of Economics and Law, Zhengzhou 450046, China
Abstract Based on data from two waves of the Chinese General Social Survey (CGSS), this paper uses an ordered logistic model and mechanism test model to analyze how social mobility and education levels influence the signaling effect on rural income inequality. The results show that the signaling effect of income inequality in rural China is weak or hindered. This is manifested by rural residents not raising their expectations for future income improvement when they observe others’ income increasing. However, educational level can stimulate rural residents’ expectations of higher income and, to some extent, alleviate the negative impact of income inequality on happiness. The results indicate that the signaling effect of income inequality in rural China is weak or hindered. This is manifested by rural residents not raising their expectations for future income improvement when they observe others’ income increasing. However, educational level can stimulate rural residents’ expectations of higher income and, to some extent, alleviate the negative impact of income inequality on happiness. Further research reveals that the signaling effect of rural income inequality needs to be jointly driven by social mobility and educational level. However, social mobility not supported by educational attainment can hinder the signaling effect. Therefore, vigorously promoting rural educational revitalization and improving rural residents’ educational level are key steps to boosting their intrinsic motivation for income increase. These steps are of great importance for promoting the economic and social development of rural areas and enhancing the happiness of rural residents.
WANG Xiaoye,WANG Wenbo,ZHANG Weili. Study on the Signal Effects and Mechanism of Rural Income Inequality in Chinese. Economic Survey, 2025, 42(3): 043.
2025, Vol. 42 
