How uncertain is household income in China

This paper studies the stochastic processes of household income in China using longitudinal data from CHNS 1989-2009. We consider both labor income and total household income. We find that (i) compared with the US households in PSID, income of the Chinese households is much more uncertain; (ii) compared with the 1990s, degree of income uncertainty in the 2000s is substantially higher in China.