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Growing out of poverty: trends and patterns of urban poverty in China 1988–2002

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  • Appleton, Simon
  • Song, Lina
  • Xia, Qingjie

Abstract

This paper estimates trends in absolute poverty in urban China from 1988 to 2002 using the Chinese Household Income Project (CHIP) surveys. Poverty incidence curves are plotted, showing that poverty has fallen markedly during the period regardless of the exact location of the poverty line. Income inequality rose from 1988 to 1995 but has been fairly constant thereafter. Models of the determination of income and poverty reveal widening differentials by education, sex and party membership. Income from government anti-poverty programs has little impact on poverty, which has fallen almost entirely due to overall economic growth rather than redistribution.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8346.

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Date of creation: Apr 2008
Date of revision: Apr 2008
Handle: RePEc:pra:mprapa:8346

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Keywords: poverty; inequality; economic growth; welfare; public policy; China;

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References

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  1. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  2. Knight, John & Song, Lina, 1995. "Towards a Labour Market in China," Oxford Review of Economic Policy, Oxford University Press, vol. 11(4), pages 97-117, Winter.
  3. Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
  4. Simon Appleton, 1995. ""The rich are just like us, only richer." Poverty functions or consumption functions? Evidence from Uganda," CSAE Working Paper Series 1995-04, Centre for the Study of African Economies, University of Oxford.
  5. Loren Brandt & Carsten A. Holz, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 43-86.
  6. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank.
  7. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309, Octomber.
  8. Fulong Wu, 2004. "Urban poverty and marginalization under market transition: the case of Chinese cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(2), pages 401-423, 06.
  9. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, inequality, and growth in urban China, 1986-2000," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 710-729, December.
  10. Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2002. "Labor retrenchment in China: Determinants and consequences," China Economic Review, Elsevier, vol. 13(2-3), pages 252-275.
  11. Fang, Cheng & Zhang, Xiaobo & Fan, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, vol. 13(4), pages 430-443, December.
  12. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
  13. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 644-663, December.
  14. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
  15. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  16. Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494, Octomber.
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Cited by:
  1. Shenggen Fan & Ravi Kanbur & Shang-Jin Wei & Xiaobo Zhang, 2013. "The Economics of China: Successes and Challenges," NBER Working Papers 19648, National Bureau of Economic Research, Inc.
  2. Quheng Deng & Bjorn Gustafsson, 2011. "A New Episode of Increased Urban Income Inequality in China," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 201116, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  3. Begum, Syeda Shahanara & Deng, Quheng & Gustafsson, Björn, 2012. "Economic growth and child poverty reduction in Bangladesh and China," Journal of Asian Economics, Elsevier, vol. 23(1), pages 73-85.

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