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China's Income Distribution, 1985-2001

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  • Wu, Ximing
  • Perloff, Jeffrey M.

Abstract

We employ a new method to estimate China's income distributions using publicly available interval summary statistics. We examine rural, urban and overall income distributions from 1985-2001. We show how the distributions change directly as well as examine trends in equality. Using an inter-temporal decomposition of aggregate inequality, we determine that increases in inequality within rural and urban sectors and the growing rural-urban income gap have been equally responsible for the growth in overall inequality over the last two decades. However, the rural-urban gap has played an increasingly important role in recent years. We also show that urban consumption inequality rose considerably.

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Bibliographic Info

Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt0zd6m0sf.

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Date of creation: 01 Feb 2005
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Handle: RePEc:cdl:indrel:qt0zd6m0sf

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Keywords: China; Income Distribution;

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References

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  1. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
  2. Wu, Ximing, 2003. "Calculation of maximum entropy densities with application to income distribution," Journal of Econometrics, Elsevier, vol. 115(2), pages 347-354, August.
  3. Simon Kuznets, 1950. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn50-1, May.
  4. T. Paul Schultz, 2004. "Human Resources in China: The Birth Quota, Returns to Schooling, and Migration," Yale School of Management Working Papers ysm366, Yale School of Management.
  5. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
  6. Dale W. Jorgenson, 1998. "Did We Lose the War on Poverty?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 79-96, Winter.
  7. Gastwirth, Joseph L & Glauberman, Marcia, 1976. "The Interpolation of the Lorenz Curve and Gini Index from Grouped Data," Econometrica, Econometric Society, vol. 44(3), pages 479-83, May.
  8. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
  9. Kakwani, Nanak C & Podder, N, 1976. "Efficient Estimation of the Lorenz Curve and Associated Inequality Measures from Grouped Observations," Econometrica, Econometric Society, vol. 44(1), pages 137-48, January.
  10. Dennis Tao Yang, 1999. "Urban-Biased Policies and Rising Income Inequality in China," American Economic Review, American Economic Association, vol. 89(2), pages 306-310, May.
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Citations

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Cited by:
  1. Qu, Zhaopeng (Frank) & Zhao, Zhong, 2008. "Urban-Rural Consumption Inequality in China from 1988 to 2002: Evidence from Quantile Regression Decomposition," IZA Discussion Papers 3659, Institute for the Study of Labor (IZA).
  2. Esfandiar Maasoumi & Almas Heshmati, 2013. "Analysis of Stochastic Dominance Ranking of Chinese Income Distributions by Household Attributes," Emory Economics 1308, Department of Economics, Emory University (Atlanta).
  3. Thanasis Stengos & Ximing Wu & Andreas Savvides, 2008. "The Global Joint Distribution of Income and Health," Working Paper Series 25-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
  4. Arslan Razmi, 2008. "Is the Chinese Investment- and Export-Led Growth Model Sustainable? Some Rising Concerns," UMASS Amherst Economics Working Papers 2008-09, University of Massachusetts Amherst, Department of Economics.
  5. Guido Cozzi & Fabio Privileggi, 2009. "The fractal nature of inequality in a fast growing world: new version," Working Papers 2009_30, Business School - Economics, University of Glasgow.
  6. Hou, Xiaohui & Coyne, Joseph, 2008. "The emergence of proprietary medical facilities in China," Health Policy, Elsevier, vol. 88(1), pages 141-151, October.

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