Using data from a nationwide household survey-the China Family Panel Studies (CFPS)-we study how social determinants-political and market factors-are associated with wealth and income among urban households in China. Results indicate that both political and market factors contribute significantly to a household's economic wellbeing, but the political premium is substantially greater in wealth than in income. Further, political capital has a larger effect on the accumulation of housing assets, while market factors are more influential on the accumulation of non-housing assets. We propose explanations for these findings.
Keywords: Household wealth; household income; market factors; political capital.