IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v3y2008i1p140-158.html
   My bibliography  Save this article

Reform, Growth, and Inequality in China

Author

Listed:
  • John KNIGHT

Abstract

This paper provides a survey of the literature on inequality in China – level, change, causes, and consequences. It attempts to answer six main questions. How much has inequality risen? What is its relation to poverty alleviation? What has happened to wealth inequality? What are the main dimensions of rising income inequality? The dimensions examined are: the rural–urban divide; urban labor market reform; regional divergence; rural–urban migration; and entrepreneurship, rent‐seeking, and corruption. Was it inevitable that inequality should rise so much? Does it matter that inequality has risen? Income distribution in China is bound up with both economic reform and economic growth. This paper concludes by considering the countervailing forces that will determine the path of inequality in future years.

Suggested Citation

  • John KNIGHT, 2008. "Reform, Growth, and Inequality in China," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 140-158, June.
    • Handle: RePEc:bla:asiapr:v:3:y:2008:i:1:p:140-158
    DOI: 10.1111/j.1748-3131.2008.00099.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1748-3131.2008.00099.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1748-3131.2008.00099.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309, Decembrie.
    2. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
    3. Ravallion, Martin & Chen, Shaohua, 2007. "China's (uneven) progress against poverty," Journal of Development Economics, Elsevier, vol. 82(1), pages 1-42, January.
    4. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, vol. 41(1), pages 19-43, June.
    5. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
    6. Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
    7. Simon Appleton & John Knight & Lina Song & Qingjie Xia, 2004. "Contrasting paradigms: segmentation and competitiveness in the formation of the chinese labour market," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 185-205.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Anping & Groenewold, Nicolaas, 2018. "The regional effects of macroeconomic shocks in China," China Economic Review, Elsevier, vol. 48(C), pages 139-154.
    2. Takatoshi ITO & Akira KOJIMA & Colin McKENZIE & Shujiro URATA, 2009. "Editors’ Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 1-18, June.
    3. Bruton, Garry & Sutter, Christopher & Lenz, Anna-Katharina, 2021. "Economic inequality – Is entrepreneurship the cause or the solution? A review and research agenda for emerging economies," Journal of Business Venturing, Elsevier, vol. 36(3).
    4. Yinhua Mai & Xiujian Peng & Peter Dixon & Maureen Rimmer, 2014. "The economic effects of facilitating the flow of rural workers to urban employment in China," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 619-642, August.
    5. Thomas Gries & Manfred Kraft & Manuel Simon, 2016. "Explaining inter-provincial migration in China," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 709-731, November.
    6. Cain, J. Salcedo & Hasan, Rana & Magsombol, Rhoda & Tandon, Ajay, 2010. "Accounting for Inequality in India: Evidence from Household Expenditures," World Development, Elsevier, vol. 38(3), pages 282-297, March.
    7. Bowles, Paul & Chang, Hongqin & Dong, Xiao-yuan, 2014. "Rural Economy Outcomes in China After Two Decades of Policy Reform," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 4(2), December.
    8. Alice N. Sindzingre & Christian Milelli, 2010. "The Uncertain Relationship between Corruption and Growth in Developing Countries: Threshold Effects and State Effectiveness," EconomiX Working Papers 2010-10, University of Paris Nanterre, EconomiX.
    9. Liu, Dan & Jin, Yanhong & Pray, Carl & Liu, Shuang, 2020. "The Effects of Digital Inclusive Finance on Household Income and Income Inequality in China?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304238, Agricultural and Applied Economics Association.
    10. Menzies, Gordon & Xiao, Sylvia Xiaolin & Dixon, Peter & Peng, Xiujian & Rimmer, Maureen, 2016. "Rural-led exchange rate appreciation in China," China Economic Review, Elsevier, vol. 39(C), pages 15-30.
    11. Shi LI, 2008. "Comment on “Reform, Growth, and Inequality in China”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 159-160, June.
    12. Chunping Han, 2014. "Health Implications of Socioeconomic Characteristics, Subjective Social Status, and Perceptions of Inequality: An Empirical Study of China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 495-514, November.
    13. Anping Chen & Nicolaas Groenewold, 2016. "Output Shocks In China: Do The Distributional Effects Depend On The Regional Source?," Economics Discussion / Working Papers 16-20, The University of Western Australia, Department of Economics.
    14. Qi, Jiaqi & Zheng, Xiaoyong & Guo, Hongdong, 2019. "The formation of Taobao villages in China," China Economic Review, Elsevier, vol. 53(C), pages 106-127.
    15. Behrouz Sadeghi Amroabadi, 2022. "Analyzing the Asymmetric Cumulative Effects of Rentier State on Income Inequality in Mena Countries," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 9(3), pages 113-146.
    16. Martin Piotrowski & Yuying Tong & Yueyun Zhang & Lu Chao, 2016. "The Transition to First Marriage in China, 1966–2008: An Examination of Gender Differences in Education and Hukou Status," European Journal of Population, Springer;European Association for Population Studies, vol. 32(1), pages 129-154, February.
    17. L. V. Dorofeeva & N. A. Roslyakova, 2022. "Transformations of the Socio-Economic Space of Regions: International Experience and Main Trends," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 2.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Linda Yueh, 2010. "The Economy of China," Books, Edward Elgar Publishing, number 3705, December.
    2. John Knight, 2021. "A Tale of Two Countries and Two Stages: South Africa, China and the Lewis Model," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 143-172, June.
    3. Kanbur, Ravi, 2009. "Poverty and Distribution: Twenty Years Ago and Now," Working Papers 48918, Cornell University, Department of Applied Economics and Management.
    4. Martin Ravallion & Shaohua Chen, 2022. "Is that really a Kuznets curve? Turning points for income inequality in China," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 749-776, December.
    5. Xiaobing Wang & Jenifer Piesse & Nick Weaver, 2011. "Mind the gaps: a political economy of the multiple dimensions of China’s rural–urban divide," Global Development Institute Working Paper Series 15211, GDI, The University of Manchester.
    6. Yu Chen, 2011. "Occupational Attainment of Migrants and Local Workers: Findings from a Survey in Shanghai’s Manufacturing Sector," Urban Studies, Urban Studies Journal Limited, vol. 48(1), pages 3-21, January.
    7. Michele Bruni & Claudio Tabacchi, 2011. "Present and Future of the Chinese labour Marke," Department of Economics 0649, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    8. Qu, Zhaopeng (Frank) & Zhao, Zhong, 2008. "Urban-Rural Consumption Inequality in China from 1988 to 2002: Evidence from Quantile Regression Decomposition," IZA Discussion Papers 3659, Institute of Labor Economics (IZA).
    9. Bourguignon, Francois, 2005. "The Effect of Economic Growth on Social Structures," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 27, pages 1701-1747, Elsevier.
    10. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    11. John Knight & Quheng Deng & Shi Li, 2011. "The Evolution of the Migrant Labor Market in China, 2002-2007," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201115, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    12. Ming Lu & Shiqing Jiang, 2008. "Labor Market Reform, Income Inequality and Economic Growth in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(6), pages 63-80, November.
    13. Elliott, Robert J.R. & Zhou, Ying, 2015. "Co-location and Spatial Wage Spillovers in China: The Role of Foreign Ownership and Trade," World Development, Elsevier, vol. 66(C), pages 629-644.
    14. GOH, Chor-ching & LUO, Xubei & ZHU, Nong, 2009. "Income growth, inequality and poverty reduction: A case study of eight provinces in China," China Economic Review, Elsevier, vol. 20(3), pages 485-496, September.
    15. Ozan Hatipoglu, 2007. "Inequality and Growth. Where Are We Headed? A Survey," Working Papers 2007/07, Bogazici University, Department of Economics.
    16. Bourguignon, Francois & Morrisson, Christian, 1998. "Inequality and development: the role of dualism," Journal of Development Economics, Elsevier, vol. 57(2), pages 233-257.
    17. Javier Alejo, 2013. "Relación de Kuznets en América Latina. Explorando más allá de la media condicional," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 59, pages 3-55, January-D.
    18. Appleton, Simon & Song, Lina, 2008. "Life Satisfaction in Urban China: Components and Determinants," World Development, Elsevier, vol. 36(11), pages 2325-2340, November.
    19. John Knight & Linda Yueh, 2004. "Urban Insiders versus Rural Outsiders: Complementarity or Competition in China`s Urban Labour Market?," Economics Series Working Papers 217, University of Oxford, Department of Economics.
    20. John Knight, 2014. "Inequality in China: An Overview," The World Bank Research Observer, World Bank, vol. 29(1), pages 1-19.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:3:y:2008:i:1:p:140-158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.