Consumption Stratification in China: An Important Tool in Stirring Up Economy

Abstract

China is experiencing a transition from a planned to a market economy and undertaking institutional reform. During this period, it is hard to use occupation and income as the major indicators for conducting social stratification, given the fact that a dual-track system remains in income distribution and that hidden (or invisible) income is permeating. Obviously, consumption structure is rising to be a more reliable indicator depicting the real condition of society. Based on a survey conducted in 1999 in Chongqing, a municipality in southwestern China, the authors of the article analyzed the social stratification condition in some elementary consumption fields, and worked into the relationship between consumption stratification and other social stratification, thus making a conclusion that educational background is the major factor among many exerting influence on consumption stratification. Therefore, while making the policy to accelerate economic development through stimulating consumption, varied measures should be taken to target different social strata according to their orientation of consumption.