Why Are Household Incomes More Unequally Distributed in China than in Russia?
AbstractHarmonised microdata show a Gini coefficient for per capita total income of 45.3 percent in China 2002 and 33.6 percent in Russia 2003. A much larger urban to rural income gap in combination with a much smaller proportion of people living in urban areas in China are important reasons for this cross-country difference in inequality. Wage is a more non-equalising income source in China than in Russia. While Russian public transfers reduce income inequality, Chinese public transfers increase income inequality. Cross-country differences in the process of transition are also found to be significant. A relatively large non-agriculture self-employment sector is non-equalising in rural China, but is also narrowing the urban to rural income gap. In contrast to the many cross-country differences revealed, we report income inequality among urban residents in China and in urban Russia to be very similar.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5383.
Length: 39 pages
Date of creation: Dec 2010
Date of revision:
Publication status: published in: Cambridge Journal of Economics, 2011, 35 (5), 897 - 920
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Other versions of this item:
- Björn Gustafsson & Li Shi & Ludmila Nivorozhkina, 2011. "Why are household incomes more unequally distributed in China than in Russia?," Cambridge Journal of Economics, Oxford University Press, vol. 35(5), pages 897-920.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-03 (All new papers)
- NEP-CIS-2011-01-03 (Confederation of Independent States)
- NEP-CNA-2011-01-03 (China)
- NEP-LAB-2011-01-03 (Labour Economics)
- NEP-LTV-2011-01-03 (Unemployment, Inequality & Poverty)
- NEP-TRA-2011-01-03 (Transition Economics)
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