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Income Growth, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China

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  • Xiao Luo
  • Chor-Ching Goh
  • Nong Zhu

Abstract

This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989-2004 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven, most rapidly in coastal areas, and among the educated. A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to the shift of employment into secondary and tertiary sector.

Suggested Citation

  • Xiao Luo & Chor-Ching Goh & Nong Zhu, 2014. "Income Growth, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China," CIRANO Working Papers 2014s-03, CIRANO.
    • Handle: RePEc:cir:cirwor:2014s-03
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    More about this item

    Keywords

    Income growth; Inequality; Poverty; China;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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