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Analysis of Stochastic Dominance Ranking of Chinese Income Distributions by Household Attributes

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  • Esfandiar Maasoumi
  • Almas Heshmati

Abstract

In this paper, we employ stochastic dominance analysis on Chinese Household Nutrition Survey (CHNS) data to investigate the inequality and relative welfare levels in China over time and among population subgroups. We find that from the period of 2000 to 2009, welfare has been continuously improved along with Chinese economic development and growth. Our pairwise comparison of population subgroups shows that there is no dominance relation between subgroups for household type, gender of households head, and age cohorts. While married group and non-child rearing group second order dominate single/divorced group and child rearing group, showing higher level of welfare in the former groups. Also, we find inequality in subgroups with different educational levels and household sizes that the groups with a higher level of education and smaller size of household tend to be better off than their counterparts.

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Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 1308.

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Date of creation: Aug 2013
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Handle: RePEc:emo:wp2003:1308

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  1. Céline BONNEFOND (GREThA, CNRS, UMR5113) & Matthieu CLEMENT (GREThA, CNRS, UMR5113), 2011. "An analysis of income polarization in rural and urban China," Cahiers du GREThA 2011-26, Groupe de Recherche en Economie Théorique et Appliquée.
  2. Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-71, July.
  3. Kanbur, Ravi & Zhang, Xiaobo, 2004. "Fifty Years of Regional Inequality in China: A Journey through Central Planning, Reform, and Openness," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Gordon Anderson & Ying Ge, 2009. "Intercity Income Inequality Growth and Convergence in China," Journal of Income Distribution, Journal of Income Distribution, vol. 18(1), pages 70-89, March.
  5. Heshmati, Almas & Maasoumi, Esfandiar, 1998. "Stochastic Dominance Amongst Swedish Income Distributions," Working Paper Series in Economics and Finance 279, Stockholm School of Economics.
  6. Ximing Wu & Jeffrey M. Perloff, 2005. "China's Income Distribution, 1985-2001," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 763-775, November.
  7. Terry Sicular & Yue Ximing & Björn Gustafsson & Li Shi, 2007. "The Urban-Rural Income Gap And Inequality In China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 93-126, 03.
  8. Millimet Daniel L & Wang Le, 2006. "A Distributional Analysis of the Gender Earnings Gap in Urban China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-50, February.
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