Nonagricultural Employment Determinants and Income Inequality Decomposition
AbstractNonagricultural income has become an important source of rural household income in China and has brought about wide inequality in rural areas. This paper investigates the determinants of nonagricultural employment and income and how they contribute to income inequality using the China Household Income Project (CHIP) 2002 survey data and a three-step decomposition approach. Our results indicate that educational inequality accounts for 9 percent and 36 percent, respectively, of wage and self-employment income inequality, implying that educational inequality plays a substantial role in nonagricultural income inequality. The results also show that community characteristics explain much inequality in wage and self-employment income, indicating that local development is important in the determination of nonagricultural income inequality.
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Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Chinese Economy.
Volume (Year): 42 (2009)
Issue (Month): 4 (July)
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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901
Other versions of this item:
- Xiaoyun Liu & Terry Sicular, 2008. "Non-agricultural Employment Determinants and Income Inequality Decomposition," University of Western Ontario, Economic Policy Research Institute Working Papers 20086, University of Western Ontario, Economic Policy Research Institute.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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