Advanced Search
MyIDEAS: Login to save this article or follow this journal

An analysis of income polarisation in rural and urban China

Contents:

Author Info

  • Céline Bonnefond
  • Matthieu Clément

Abstract

The purpose of this article is to contribute to the analysis of Chinese income inequality by focusing more specifically on income polarisation, which captures both alienation (i.e. heterogeneity between income groups) and identification (i.e. homogeneity within groups). The empirical investigations conducted as part of this research are based on the China Health and Nutrition Survey data from 1989 to 2006 and indicate that Chinese household income is strongly polarised. After a period of stagnation between 1989 and 1997, the degree of polarisation increased significantly between 1997 and 2006, indicating the constitution of identified groups in middle and upper income ranges. Although the level of income polarisation is higher in rural areas, the increase in polarisation is far more conspicuous in urban areas, suggesting that the risk of social tensions is more pregnant in Chinese cities. The analysis of the sources of income polarisation in rural areas shows that the increase in polarisation is closely linked to non-agricultural opportunities. In urban areas the emergence of identified groups in middle and upper income classes can be explained both by the sharp decline in subsidies and by the liberalisation of the urban labour market and state enterprises.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1080/14631377.2012.647972
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 24 (2012)
Issue (Month): 1 (June)
Pages: 15-37

as in new window
Handle: RePEc:taf:pocoec:v:24:y:2012:i:1:p:15-37

Contact details of provider:
Web page: http://www.tandfonline.com/CPCE20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/CPCE20

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Xiaolan Fu & V. N. Balasubramanyam, 2003. "Township and Village Enterprises in China," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 27-46.
  2. Kanbur, Ravi & Zhang, Xiaobo, 1999. "Which Regional Inequality? The Evolution of Rural-Urban and Inland-Coastal Inequality in China from 1983 to 1995," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 686-701, December.
  3. Wan, Guanghua & Zhou, Zhangyue, 2004. "Income Inequality in Rural China: Regression-based Decomposition Using Household Data," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Joan-Maria Esteban & Debraj Ray, 1991. "On the Measurement of Polarization," Boston University - Institute for Economic Development, Boston University, Institute for Economic Development 18, Boston University, Institute for Economic Development.
  5. Abdelkrim Araar, 2008. "On the Decomposition of Polarization Indices: Illustrations with Chinese and Nigerian Household Surveys," Cahiers de recherche, CIRPEE 0806, CIRPEE.
  6. Leonardo Gasparini & Matías Horenstein & Sergio Olivieri, 2006. "Economic Polarisation in Latin America and the Caribbean: What do Household Surveys Tell Us?," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0038, CEDLAS, Universidad Nacional de La Plata.
  7. Sylvie Demurger & Martin Fournier & Shi Li, 2006. "Urban income inequality in China revisited (1988–2002)," Post-Print halshs-00120375, HAL.
  8. Marron, J.S. & Schmitz, H.-P., 1992. "Simultaneous Density Estimation of Several Income Distributions," Econometric Theory, Cambridge University Press, vol. 8(04), pages 476-488, December.
  9. repec:ese:iserwp:95-01 is not listed on IDEAS
  10. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2003. "Polarization: Concepts, Measurement, Estimation," Working Papers 46, Barcelona Graduate School of Economics.
  11. Xin Meng, 2004. "Economic Restructuring and Income Inequality in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 357-379, 09.
  12. Dwayne Benjamin & Loren Brandt & John Giles, 2003. "The Evolution of Income Inequality in Rural China," Working Papers benjamin-04-01, University of Toronto, Department of Economics.
  13. Renard, Mary-Francoise, 2002. "A pessimistic view on the impact of regional inequalities," China Economic Review, Elsevier, vol. 13(4), pages 341-344, December.
  14. Dwayne Benjamin & Loren Brandt & John Giles & Sangui Wang, 2005. "Income Inequality During China's Economic Transition," Working Papers tecipa-238, University of Toronto, Department of Economics.
  15. Keith Griffin & Azizur Rahman Khan & Carl Riskin, 1999. "Income Distribution in Urban China during the Period of Economic Reform and Globalization," American Economic Review, American Economic Association, vol. 89(2), pages 296-300, May.
  16. Isaias H. Salgado-Ugarte & Marco A. Perez-Hernandez, 2003. "Exploring the use of variable bandwidth kernel density estimators," Stata Journal, StataCorp LP, StataCorp LP, vol. 3(2), pages 133-147, June.
  17. Gradin, Carlos, 2000. "Polarization by Sub-populations in Spain, 1973-91," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(4), pages 457-74, December.
  18. Sicular, Terry & Yue, Ximing & Gustafsson, Bjorn & Li, Shi, 2006. "The Urban-Rural Income Gap and Inequality in China," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2006/135, World Institute for Development Economic Research (UNU-WIDER).
  19. Kai-yuen, Tsui, 1998. "Factor Decomposition of Chinese Rural Income Inequality: New Methodology, Empirical Findings, and Policy Implications," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 502-528, September.
  20. Chen, Xi & Zhang, Xiaobo, 2009. "The Distribution of Income and Well-Being in Rural China: A Survey of Panel Data Sets, Studies and New Directions," MPRA Paper 20587, University Library of Munich, Germany.
  21. Jenkins, Stephen P., 1995. "Did the middle class shrink during the 1980s? UK evidence from kernel density estimates," Economics Letters, Elsevier, vol. 49(4), pages 407-413, October.
  22. Joan Esteban & Carlos Gradín & Debraj Ray, 2007. "An Extension of a Measure of Polarization, with an application to the income distribution of five OECD countries," Journal of Economic Inequality, Springer, Springer, vol. 5(1), pages 1-19, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Céline BONNEFOND & Matthieu CLEMENT & François COMBARNOUS, 2013. "In search of the elusive Chinese urban middle class: An exploratory analysis," Cahiers du GREThA, Groupe de Recherche en Economie Théorique et Appliquée 2013-19, Groupe de Recherche en Economie Théorique et Appliquée.
  2. Esfandiar Maasoumi & Almas Heshmati, 2013. "Analysis of Stochastic Dominance Ranking of Chinese Income Distributions by Household Attributes," Emory Economics, Department of Economics, Emory University (Atlanta) 1308, Department of Economics, Emory University (Atlanta).
  3. Bonnefond, Céline & Clément, Matthieu, 2014. "Social class and body weight among Chinese urban adults: The role of the middle classes in the nutrition transition," Social Science & Medicine, Elsevier, vol. 112(C), pages 22-29.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:24:y:2012:i:1:p:15-37. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.