Rural Chinese households shift to non-living expenses, impacting consumption patterns.
The study looked at how income and spending of rural Chinese households changed between 2000 and 2004. They found that income and spending were closely linked, with wages playing a big role. In 2004, rural households started spending more on non-essential items compared to 2000. However, they spent less on healthcare. This suggests that even though rural households wanted to spend more on higher-quality items, their low income limited their ability to do so. To improve rural consumption and spending habits, the study suggests increasing wages for rural households.