Non-agricultural Employment Determinants and Income Inequality Decomposition
AbstractNon-agricultural income has become an important source of rural household income and has brought with a wide inequality in rural China. This paper investigates the determinants of non-agricultural employment as well as non-agricultural income and then assesses the contribution of these determinants to income inequality with the Chinese Academy of Social Science 2003 survey data and a three-step decomposition approach. Our results indicate that education inequality accounts for 9% and 36% wage and self-employment income inequality respectively which implies that education inequality plays substantial roles in non-agricultural income inequalities. The community characteristics collectively accounts for 46% and 32% of the wage and self-employment income inequality respectively which in turn suggests that regional development is of great importance in the determination of non-agricultural income inequality.
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Bibliographic InfoPaper provided by University of Western Ontario, Economic Policy Research Institute in its series University of Western Ontario, Economic Policy Research Institute Working Papers with number 20086.
Date of creation: 2008
Date of revision:
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Postal: Economic Policy Research Institute, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
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Web page: http://economics.uwo.ca/research/research_papers/epri_workingpapers.html
non-agricultural income; employment; inequality;
Other versions of this item:
- Xiaoyun Liu & Terry Sicular, 2009. "Nonagricultural Employment Determinants and Income Inequality Decomposition," Chinese Economy, M.E. Sharpe, Inc., vol. 42(4), pages 29-43, July.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-07 (All new papers)
- NEP-DEV-2008-12-07 (Development)
- NEP-LAB-2008-12-07 (Labour Economics)
- NEP-TRA-2008-12-07 (Transition Economics)
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