Income Inequality in Rural China: Regression-based Decomposition Using Household Data
AbstractA considerable literature exists on the measurement of income inequality in China and its increasing trend. Much less is known about the driving forces of this trend and their quantitative contributions. Conventional decompositions, by factor components or by population subgroups, provide only limited information on the determinants of income inequality. This paper represents an early attempt to apply the regression-based decomposition framework to the study of inequality accounting in rural China, using household-level data. It is found that geography has been the dominant factor but is becoming less important in explaining total inequality. Capital input emerges as a most significant determinant of income inequality. Farming structure is more important than labor and other inputs in contributing to income inequality across households. Copyright United Nations University 2005.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2004/51.
Length: 18 pages
Date of creation: 2004
Date of revision:
inequality decomposition; regression; income generating function; China;
Other versions of this item:
- Guanghua Wan & Zhangyue Zhou, 2005. "Income Inequality in Rural China: Regression-based Decomposition Using Household Data," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 107-120, 02.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April.
- Shujie Yao, 1997. "Industrialization and spatial income inequality in rural China, 1986-92," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(1), pages 97-112, 05.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Guang Wan & Enjiang Cheng, 2001. "Effects of land fragmentation and returns to scale in the Chinese farming sector," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 183-194.
- Knight, J. & Song, L., 1990.
"The Spatial Contribution To Income Inequality In Rural China,"
Economics Series Working Papers
99106, University of Oxford, Department of Economics.
- Knight, John & Song, Lina, 1993. "The Spatial Contribution to Income Inequality in Rural China," Cambridge Journal of Economics, Oxford University Press, vol. 17(2), pages 195-213, June.
- Adams, Richard H., Jr, 1999.
"Nonfarm income, inequality, and land in Rural Egypt,"
Policy Research Working Paper Series
2178, The World Bank.
- Adams, Richard H, Jr, 2002. "Nonfarm Income, Inequality, and Land in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 339-63, January.
- Jonathan Morduch & Terry Sicular, 1998.
"Rethinking Inequality Decomposition, with Evidence from Rural China,"
Harvard Institute of Economic Research Working Papers
1831, Harvard - Institute of Economic Research.
- Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
- Wan, Guang Hua, 2001. "Changes in regional inequality in rural China: decomposing the Gini index by income sources," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), September.
- Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
- Fields, Gary S & Yoo, Gyeongjoon, 2000. "Falling Labor Income Inequality in Korea's Economic Growth: Patterns and Underlying Causes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 139-59, June.
- Xiaobo Zhang & Kevin Zhang, 2003. "How Does Globalisation Affect Regional Inequality within A Developing Country? Evidence from China," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 47-67.
- Kanbur, Ravi & Zhang, Xiaobo, 1999. "Which Regional Inequality? The Evolution of Rural-Urban and Inland-Coastal Inequality in China from 1983 to 1995," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 686-701, December.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Ravallion, Martin & Chen, Shaohua, 1999. " When Economic Reform Is Faster Than Statistical Reform: Measuring and Explaining Income Inequality in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(1), pages 33-56, February.
- Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
- Griffin, Keith & Saith, Ashwani, 1982. "The Pattern of Income Inequality in Rural China," Oxford Economic Papers, Oxford University Press, vol. 34(1), pages 172-206, March.
- Muller, Adrian, 2006.
"Clarifying Poverty Decomposition,"
Working Papers in Economics
217, University of Gothenburg, Department of Economics, revised 17 Nov 2008.
- Müller, Adrian, 2008. "Clarifying Poverty Decomposition," Proceedings of the German Development Economics Conference, Zurich 2008 30, Verein für Socialpolitik, Research Committee Development Economics.
- Rosalba Manna & Andrea Regoli, 2012. "Regression-based approaches for the decomposition of income inequality in Italy, 1998-2008," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 14(1), pages 5-18, October.
- Clarke-Sather, Afton & Qu, Jiansheng & Wang, Qin & Zeng, Jingjing & Li, Yan, 2011. "Carbon inequality at the sub-national scale: A case study of provincial-level inequality in CO2 emissions in China 1997-2007," Energy Policy, Elsevier, vol. 39(9), pages 5420-5428, September.
- Glauben, Thomas & Herzfeld, Thomas & Rozelle, Scott & Wang, Xiaobing, 2012. "Persistent Poverty in Rural China: Where, Why, and How to Escape?," World Development, Elsevier, vol. 40(4), pages 784-795.
- Zhang, Yin & Wan, Guanghua, 2006.
"The Impacts of Growth and Inequality on Rural Poverty in China,"
Working Paper Series
RP2006/94, World Institute for Development Economic Research (UNU-WIDER).
- Zhang, Yin & Wan, Guanghua, 2006. "The impact of growth and inequality on rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 694-712, December.
- Chi, Wei, 2012.
"Capital income and income inequality: Evidence from urban China,"
Journal of Comparative Economics,
Elsevier, vol. 40(2), pages 228-239.
- Chi, Wei, 2011. "Capital Income and Income Inequality: Evidence from Urban China," MPRA Paper 34521, University Library of Munich, Germany.
- Fan, Peilei & Wan, Guanghua, 2006. "China's Regional Inequality in Innovation Capability, 1995-2004," Working Paper Series RP2006/153, World Institute for Development Economic Research (UNU-WIDER).
- Zhao Chen & Ming Lu & Guanghua Wan, 2010. "Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality," Global COE Hi-Stat Discussion Paper Series gd09-130, Institute of Economic Research, Hitotsubashi University.
- Gajwani, Kiran & Kanbur, Ravi & Zhang, Xiaobo, 2006. "Comparing the evolution of spatial inequality in China and India: a fifty-year perspective," DSGD discussion papers 44, International Food Policy Research Institute (IFPRI).
- Xavier Vollenweider & Salvatore Di Falco & Cathal O’Donoghue, 2011. "The impact of risk on inequality: evidence from the Irish agricultural sector," Grantham Research Institute on Climate Change and the Environment Working Papers 47, Grantham Research Institute on Climate Change and the Environment.
- Il Houng Lee & Murtaza H. Syed & Xin Wang, 2013. "Two Sides of the Same Coin? Rebalancing and Inclusive Growth in China," IMF Working Papers 13/185, International Monetary Fund.
- Ravi Kanbur, 2005.
"Spatial Inequality and Development: Overview of UNU-WIDER Project,"
- Kanbur, Ravi & Venables, Anthony J., 2005. "SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project," Working Papers 127127, Cornell University, Department of Applied Economics and Management.
- Guanghua Wan, 2012. "Towards Greater Equality in China: The Economic Growth Dividend," Working Papers 2012/33, Maastricht School of Management.
- Higashikata, Takayuki, 2013. "Factor decomposition of income inequality change : Japan's regional income disparity from 1955 to 1998," IDE Discussion Papers 400, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- James Alm & Yongzheng Liu, 2013. "China's Tax-for-Fee Reform and Village Inequality," Working Papers 1304, Tulane University, Department of Economics.
- Ming Lu & Jianzhi Zhao, 2009. "The Contribution of Social Networks to Income Inequality in Rural China: A Regression-Based Decomposition and Cross-Regional Comparison," Global COE Hi-Stat Discussion Paper Series gd08-019, Institute of Economic Research, Hitotsubashi University.
- XING, Li & FAN, Shenggen & LUO, Xiaopeng & ZHang, Xiaobo, 2009. "Community poverty and inequality in western China: A tale of three villages in Guizhou Province," China Economic Review, Elsevier, vol. 20(2), pages 338-349, June.
- Wan, Guanghua & Zhang, Xiaobo, 2006. "Rising inequality in China," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 651-653, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.