Nonagricultural Employment Determinants and Income Inequality Decomposition
Nonagricultural income has become an important source of rural household income in China and has brought about wide inequality in rural areas. This paper investigates the determinants of nonagricultural employment and income and how they contribute to income inequality using the China Household Income Project (CHIP) 2002 survey data and a three-step decomposition approach. Our results indicate that educational inequality accounts for 9 percent and 36 percent, respectively, of wage and self-employment income inequality, implying that educational inequality plays a substantial role in nonagricultural income inequality. The results also show that community characteristics explain much inequality in wage and self-employment income, indicating that local development is important in the determination of nonagricultural income inequality.
Volume (Year): 42 (2009)
Issue (Month): 4 (July)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jonathan Morduch & Terry Sicular, 2002.
"Rethinking Inequality Decomposition, With Evidence from Rural China,"
Royal Economic Society, vol. 112(476), pages 93-106, January.
- Jonathan Morduch & Terry Sicular, 1998. "Rethinking Inequality Decomposition, with Evidence from Rural China," Harvard Institute of Economic Research Working Papers 1831, Harvard - Institute of Economic Research.
- Du, Yang & Park, Albert & Wang, Sangui, 2005. "Migration and rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 688-709, December.
- Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
- Kai-yuen, Tsui, 1998. "Trends and Inequalities of Rural Welfare in China: Evidence from Rural Households in Guangdong and Sichuan," Journal of Comparative Economics, Elsevier, vol. 26(4), pages 783-804, December.
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Dwayne Benjamin & Loren Brandt & John Giles, 2003.
"The Evolution of Income Inequality in Rural China,"
benjamin-04-01, University of Toronto, Department of Economics.
- meng, xin & wu, harry, 1994.
"Household Income Determination and Regional Income Differential in Rural China,"
1345, University Library of Munich, Germany.
- Xin Meng & Harry X Wu, 1995. "Household Income Determination and Regional Income Differential in Rural China," Chinese Economies Research Centre (CERC) Working Papers 1995-04, University of Adelaide, Chinese Economies Research Centre.
- de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002.
"The Evolution of China's Rural Labor Markets During the Reforms,"
Journal of Comparative Economics,
Elsevier, vol. 30(2), pages 329-353, June.
- de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution Of China'S Rural Labor Markets During The Reforms," Working Papers 11984, University of California, Davis, Department of Agricultural and Resource Economics.
- John Knight & Lina Song, 2003. "Chinese Peasant Choices: Migration, Rural Industry or Farming," Oxford Development Studies, Taylor & Francis Journals, vol. 31(2), pages 123-148.
- Fields, Gary S & Yoo, Gyeongjoon, 2000. "Falling Labor Income Inequality in Korea's Economic Growth: Patterns and Underlying Causes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 139-59, June.
- Adams, Richard H., 2001. "Nonfarm income, inequality, and poverty in rural Egypt and Jordan," Policy Research Working Paper Series 2572, The World Bank.
- Zhang, Linxiu & Rozelle, Scott & Huang, Jikun, 2001. "Off-Farm Jobs and On-Farm Work in Periods of Boom and Bust in Rural China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 505-526, September.
- Wan, Guanghua, 2004. "Accounting for income inequality in rural China: a regression-based approach," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 348-363, June.
When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:42:y:2009:i:4:p:29-43. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)The email address of this maintainer does not seem to be valid anymore. Please ask Chris Nguyen to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.