Uneven compensation and relocation for displaced residents: The case of Nanjing

•This study examines factors affecting uneven approaches to in-kind and monetary compensation in relocation in China.•It evaluates factors affecting the uneven level of monetary compensation.•Urban villages and unemployed households are able to obtain in-kind compensation.•Urban village, large family and highly educated households receive a higher discount rate.•Households with work-unit employees receive a lower discount rate.

Land marketization and housing commodification have stimulated inner-city restructuring and urban expansion in China and have also induced a large amount of population displacement. Affordable housing, as part of compensation, tends to be the most common relocation housing for displaced households. It is allocated through two approaches: in-kind compensation and monetary compensation. Local government provides in-kind compensation to displaced households in the form of affordable housing, as direct compensation for demolished houses, and gives priority to those who have received monetary compensation to enable them to purchase affordable housing at a discount from the market price. The process of negotiation between local government and displaced households is complicated. As a result, uneven compensation occurs in terms of compensation approaches, as well as in how much displaced households are paid for similar new affordable houses. This study conducts a detailed analysis of the uneven displacement compensation and relocation process. It uses residential surveys conducted in Nanjing to examine uneven compensation along two dimensions: compensation approaches and the purchasing discount on new, compensated affordable housing.