The Measure of Displaced Households’ Compensation Approaches and Benefits Rate Based on Regression Model: A Case of Nanjing
Dongqi Sun1(),Jingxiang Zhang2(),Hao Chen2,Yi Hu3
1.Institute of Geographic Sciences and Natural Resources Research,Chinese Academy of Science,Beijing,100101,China 2.School of Architecture and Urban Planning, Nanjing University, Nanjing 210093, Jiangsu, China 3.Urban-rural Planning Management Center, Ministry of Housing and Urban-Rural Development, Beijing 100835, China)
Displaced compensation is the main point of displaced households’ benefits in inner-city restructuring and urban expansion. Its compensation approaches and benefits rate are influenced by many factors. This article uses 349 displaced residential surveys conducted in 4 resettlement areas in Nanjing to examine the compensation. 1) Examining compensation approaches by using binary logistic regression. In China, there are two approaches: in-kind compensation and monetary compensation. The result shows that displaced households from urban village and households with the couple are both unemployed are more likely to get in-kind compensation. Because of the large size of their displaced housing area in urban village, the monetary expenses are too high to the local government. And the resettlement housing is founded by the central government and municipal government subsidies, not by the local government alone, therefore, the local government are more likely to offer in-kind compensation for displaced households from urban village. 2) Examining the benefits rate of displaced households who get monetary compensation. The results show that: households from urban village have the highest benefits rate, because before displacement they could get more income from renting their housing, the local government have to give more to persuade them to leave. And “more than 7 members’ large household size” and “high education level” have significant positive contribution to benefits rate. For the large size households, the local government could consider their actual situation to give more benefits. And for the high education households, they know more law and policies to negotiate with the local government to get more. But the household with stated-work unit family member get less benefit rate. The results of this analysis could have several explanations. One is that residents who held a position in a work unit are usually better off than farmers. They are able to accept a lower discount than farmers, and may even purchase market housing. Another explanation is that since work units are supported by corresponding ministries of the central government, or have to maintain good relationships with the local government, in some demolition projects the local government coordinates with work units to make sure that employees are forced to move or to accept and sign the compensation contracts as soon as possible which make them loss the negotiation chance. We conclude that the benefit is not the result of market-oriented, but the product of the market and the old system of planned economy. Because in the process of compensation, the local government still use some the planned economy period approaches, such as incomplete monetization, set the standard ceiling; consider the households actual situation (whether they are low-income), etc.. Market led by the demolition and land transfer, in the resettlement compensation is still the implementation of non-market approach. Therefore, the establishment of fair and reasonable compensation mechanism is the key solution.
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