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Top-income data and income inequality correction in China

Author

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  • Li, Chengyou
  • Yu, Yangcheng
  • Li, Qinghai

Abstract

This paper estimates the level of income inequality of Chinese residents by combining data from the 2013 Chinese Household Income Project (CHIP 2013) and the Top Incomes in China in 2013 (TIC 2013). Specifically, we apply a Pareto model and a parametric bootstrap method to correct for missing top incomes in the CHIP 2013. After connecting the two datasets, we find that the level of income inequality measured by the Gini coefficient and top income share increases significantly compared with the CHIP2013 data. These conclusions are supported by robustness checks based on other household survey (HS) data and techniques (the expansion method and the direct splicing method). Our results not only facilitate understanding of China’s true level of income inequality, but also provide evidence for income-related policies. It is essential, therefore, that we collect top-income data in China and connect it with the HS data.

Suggested Citation

  • Li, Chengyou & Yu, Yangcheng & Li, Qinghai, 2021. "Top-income data and income inequality correction in China," Economic Modelling, Elsevier, vol. 97(C), pages 210-219.
    • Handle: RePEc:eee:ecmode:v:97:y:2021:i:c:p:210-219
    DOI: 10.1016/j.econmod.2021.01.018
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    Cited by:

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    2. Changfu Luo & Lian Xie, 2023. "Regional intergenerational mobility and corporate innovation: Evidence from China," PLOS ONE, Public Library of Science, vol. 18(4), pages 1-18, April.
    3. Jiachen Ning & Pingyu Zhang & Qifeng Yang & Zuopeng Ma, 2023. "Spatial Pattern of Farmland Transfer in Liaoning Province, China," Agriculture, MDPI, vol. 13(7), pages 1-19, July.
    4. Zhang, Chen & Yu, Yangcheng & Li, Qinghai, 2023. "Top incomes and income polarisation in China," China Economic Review, Elsevier, vol. 77(C).
    5. Jinchao Wang & Changfu Luo, 2022. "Social Mobility and Firms’ Total Factor Productivity: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    6. Dai, Li & Martins, Pedro S., 2024. "Does vocational education pay off in China? Evidence from city-level education supply shocks," Economic Modelling, Elsevier, vol. 140(C).
    7. ATHANASENAS Athanasios & POLYCHRONIDOU Persefoni & CHAPSA Xanthippi, 2021. "An Economic Crisis “State of Shock”: An Empirical Analysis of the Greek Economy," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    8. Feng, Qundi & He, Qinying, 2022. "Does parental migration increase upward intergenerational mobility? Evidence from rural China," Economic Modelling, Elsevier, vol. 115(C).
    9. Hounan Chen & Xiaojie Liu, 2025. "The Impact of the Digital Economy on Educational Income Inequity: Evidence from Household Survey in China," Sustainability, MDPI, vol. 17(9), pages 1-21, May.
    10. Yu, Yangcheng & Li, Shi & Li, Qinghai, 2025. "The missing rich households and wealth polarization in 21st century China," China Economic Review, Elsevier, vol. 94(PA).

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    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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