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Income and consumption inequality in China: A comparative approach with India

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  • Carlos Gradín
  • Binbin Wu

Abstract

We analyse income and expenditure distribution in China in a comparative perspective with India. These countries represent extreme cases in the relationship of inequality to both wellbeing indicators. Income is more highly concentrated than expenditure in India, especially at the top of the distribution. Both types of inequality are similar in China, although expenditure is more unequally distributed than income in urban areas. China has a much stronger correlation in individual ranks and levels between the two wellbeing distributions.

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  • Carlos Gradín & Binbin Wu, 2019. "Income and consumption inequality in China: A comparative approach with India," WIDER Working Paper Series wp-2019-54, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2019-54
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    2. Zhou Jiang & Maoxia Zeng & Mingming Shi, 2023. "E‐commerce and Consumption Inequality in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(5), pages 61-86, September.
    3. Xia, Yin-Shuang & Sun, Lu-Xuan & Feng, Chao, 2022. "What causes spatial inequalities of low-carbon development in China's transport sector? A newly proposed meta-frontier DEA-based decomposition approach," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    4. Tushar Agrawal & Ankush Agrawal, 2023. "Beyond Consumption Expenditure: Income Inequality and Its Sources in India," Progress in Development Studies, , vol. 23(1), pages 7-27, January.
    5. M. R. Narayana, 2021. "Economic inequality by age and its implications for inequity for living generations in India: evidence based on National Transfer Accounts," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 373-396, June.
    6. Khan, Haider & Szymanski-Burgos, Adam, 2021. "Modeling the Social Economy of Pandemics in China: An Input-Output Approach," MPRA Paper 109021, University Library of Munich, Germany.
    7. Ping Zhang & Weiwei Li & Kaixu Zhao & Sidong Zhao, 2021. "Spatial Pattern and Driving Mechanism of Urban–Rural Income Gap in Gansu Province of China," Land, MDPI, vol. 10(10), pages 1-29, September.
    8. Dong, Shizheng & Zhang, Zili & Han, Yiduo & Si, Yanwu, 2023. "Do pension subsidies reduce household education expenditure inequality? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 532-540.
    9. Jian Zhu & Zifang Li & Hui Wang, 2023. "Internet Development and Urban–Rural Consumption Inequality: Evidence from Chinese Cities," Sustainability, MDPI, vol. 15(12), pages 1-15, June.
    10. Khan, Haider, 2023. "Socialism or Barbarism in the 21st Century? China vs. Global North during Capitalist (COVID) Crisis, Inequality and Poverty," MPRA Paper 117227, University Library of Munich, Germany.
    11. Vide Romana Korez & Zavrl Irena & Hunjet Anica, 2021. "Exploring Emerging Markets’ Demographic and Macroeconomic Dynamics and the Middle Class Growth: The Case of China and India," Naše gospodarstvo/Our economy, Sciendo, vol. 67(4), pages 33-55, December.
    12. Jianxu Liu & Xiaoqing Li & Shutong Liu & Sanzidur Rahman & Songsak Sriboonchitta, 2022. "Addressing Rural–Urban Income Gap in China through Farmers’ Education and Agricultural Productivity Growth via Mediation and Interaction Effects," Agriculture, MDPI, vol. 12(11), pages 1-23, November.
    13. Zhao, Chunkai & Wu, Yaqian & Guo, Jianhao, 2022. "Mobile payment and Chinese rural household consumption," China Economic Review, Elsevier, vol. 71(C).

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    More about this item

    Keywords

    Income inequality; Consumption; Consumption expenditure; Expenditure inequalities;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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