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Assessing Bipolarization: A Consistent Nonparametric Test for Relative Bipolarization Lorenz Dominance

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  • Weiqi Yang
  • Weiwei Zhuang
  • Zhuoyue Jiang

Abstract

This study introduces a consistent nonparametric test for Relative Bipolarization Lorenz Dominance (RBLD), addressing a methodological gap wherein the Relative Bipolarization Location Curve (RBLC) criterion lacked a robust statistical implementation. We develop a consistent nonparametric test for RBLD that is asymptotically valid. Simulation results demonstrate its superior power in detecting “middle‐class hollowing”, a structural shift often missed by traditional inequality metrics. We apply this test to China Family Panel Studies (CFPS) data (2012–2020) and find two key results: (1) our cross‐sectional analysis reveals a clear hierarchy of regional household consumption bipolarization where traditional LD tests are inconclusive; and (2) a dynamic evaluation of the Targeted Poverty Alleviation (TPA) policy using Panel Data (PD) sampling reveals a successful post‐2016 reversal of worsening bipolarization, but an ultimately incomplete recovery for the most vulnerable regions. Our test thus provides a new diagnostic tool for a post‐poverty‐alleviation era focused on structural disparity.

Suggested Citation

  • Weiqi Yang & Weiwei Zhuang & Zhuoyue Jiang, 2026. "Assessing Bipolarization: A Consistent Nonparametric Test for Relative Bipolarization Lorenz Dominance," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 72(2), May.
    • Handle: RePEc:bla:revinw:v:72:y:2026:i:2:n:e70074
    DOI: 10.1111/roiw.70074
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