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The effects of transition on the distribution of income in China

Author

Listed:
  • Björn Gustafsson
  • Li Shi

Abstract

Using two large samples for 1988 and 1995 we decompose the Gini coefficient of household income according to type of income with the purpose of analyzing reasons for the rapid increase of inequality. The results show that the change in relative size of money income and its changed profile are found to be the major processes behind the rapid increase of income inequality in rural China. Changes in housing allocation and an increased number of retirees in combination with higher benefits have made inequality increase in urban China and in China as a whole. JEL classification: D31, P27.

Suggested Citation

  • Björn Gustafsson & Li Shi, 2001. "The effects of transition on the distribution of income in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 593-617, November.
    • Handle: RePEc:bla:etrans:v:9:y:2001:i:3:p:593-617
    DOI: 10.1111/1468-0351.00090
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    Citations

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    Cited by:

    1. Chi, Wei, 2012. "Capital income and income inequality: Evidence from urban China," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 228-239.
    2. John Knight & Li Shi & Deng Quheng, 2008. "The Curious Case of Son Preference and Household Income in Rural China," CSAE Working Paper Series 2008-03, Centre for the Study of African Economies, University of Oxford.
    3. Chris Sakellariou, 2012. "Unconditional quantile regressions, wage growth and inequality in the Philippines, 2001--2006: the contribution of covariates," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3815-3830, October.
    4. Chi, Wei & Li, Bo & Yu, Qiumei, 2011. "Decomposition of the increase in earnings inequality in urban China: A distributional approach," China Economic Review, Elsevier, vol. 22(3), pages 299-312, September.
    5. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension fairness in China," China Economic Review, Elsevier, vol. 28(C), pages 25-36.
    6. Chris SAKELLARIOU, 2009. "Changing Wage Distributions and the Evolution of Wage Inequality in Indonesia:1994 – 2007," Economic Growth Centre Working Paper Series 0906, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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