Household Income Determination and Regional Income Differential in Rural China
AbstractRegional income dispersion is a sensitive issue in China in terms of judging the impact of economic reform. This study looks closely at the issue as to what are the determinants of income variation among households in general, and which are the key determinants of income dispersion among different regions. The study uses the data from a sample survey on 1000 rural households in five Chinese provinces. Household income equations are estimated to assess the determinants of income variations among China’s rural households. Blinder’s (1973) decomposition approach is used to determine whether the regional income differential is mostly due to regional endowment differential or regional premium. Among other interesting findings, the major determinant of regional income dispersion seems to be the degree of regional marketisation. Moreover, the rate of return to most factors is significantly different across regions. These findings suggest that further economic reform in less developed regions and the open up of inter-regional trade and factor mobility are the most important factors in reducing the regional income differential
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 1345.
Date of creation: 1994
Date of revision:
Publication status: Published in Asian Economic Journal 12.1(1998): pp. 65-88
household income; regional differential; rural china;
Other versions of this item:
- Xin Meng & Harry X Wu, 1995. "Household Income Determination and Regional Income Differential in Rural China," Chinese Economies Research Centre (CERC) Working Papers 1995-04, University of Adelaide, Chinese Economies Research Centre.
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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