The Economic Origin of “Loyal Opposition”: Homeownership and Political Participation in China

Abstract What shapes the ways in which citizens participate in politics? This article investigates the association between private homeownership and the forms of citizens’ political behaviors using a Chinese nationwide social survey. Exploiting the abolishment of the welfare housing system in the late 1990s as a quasi-natural experiment, I find that owning a home and experiencing home value appreciation increases citizens’ willingness for political engagement as well as participatory behaviors through formal channels, but reduces their confrontational behaviors towards government such as participation in protests. Further evidence on political attitudes suggests that homeowners are more critical of government performance, yet they report higher political trust in the state and a stronger preference for maintaining the status quo. These findings highlight the critical role of asset ownership in preventing conflict and promoting stability by shaping the political behaviors and beliefs of citizens.