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<p>This paper examines the impact of trade openness on individuals’ perceptions of income inequality, using data from the 2018 China Household Income Project (CHIP). The findings show that higher levels of trade openness significantly intensify individual perceptions of income inequality, with particularly pronounced effects among skilled workers, those in informal employment, and individuals employed in tradable sectors. Mechanism analyses further suggest that trade openness amplifies perceived income inequality by lowering health outcomes, increasing relative income deprivation, and lengthening working hours. These results provide empirical support for the role of trade openness in shaping public perceptions of inequality. The study contributes to a deeper understanding of the micro-level socio-economic consequences of trade openness and offers important insights into the political economy of trade and the formulation of inclusive trade policies.</p>

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The impact of trade openness on perceived income inequality: evidence from China

  • 期刊论文

  • 发表日期：

    2025年11月21日

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  • Xiaofan Liu,
  • Tian Liu

摘要

This paper examines the impact of trade openness on individuals’ perceptions of income inequality, using data from the 2018 China Household Income Project (CHIP). The findings show that higher levels of trade openness significantly intensify individual perceptions of income inequality, with particularly pronounced effects among skilled workers, those in informal employment, and individuals employed in tradable sectors. Mechanism analyses further suggest that trade openness amplifies perceived income inequality by lowering health outcomes, increasing relative income deprivation, and lengthening working hours. These results provide empirical support for the role of trade openness in shaping public perceptions of inequality. The study contributes to a deeper understanding of the micro-level socio-economic consequences of trade openness and offers important insights into the political economy of trade and the formulation of inclusive trade policies.