Analysis Of The Determinants Of Income And Income Gap Between Urban And Rural China
This paper studies the determinants of income and urban–rural income gap to shed light on the problem of urban–rural income inequality in China. Ordinary least square (OLS), conditional quantile regression and Blinder–Oaxaca decomposition methods are used to analyze four waves of the China Health and Nutrition Survey (CHNS) household data. Results show that education and occupation are essential determinants of households' income level. These two factors exert heterogeneous effects at different percentiles of income distribution. In urban areas, education is more valued for high income earners, while for rural areas, specialized or tertiary education are more beneficial for the poorer households. Among all occupational types, farm activities show much lower returns than other types; and this is more evident for individuals at the left tail of the income distribution. We also find that for the sampled provinces, urban–rural income gap increases from year 2000 to 2004 but the gap decreases from 2004 to 2009. The income gap can be largely explained by the individuals' attributes, especially by the level of education and type of occupation.
Volume (Year): 02 (2013)
Issue (Month): 01 ()
|Contact details of provider:|| Web page: http://www.worldscinet.com/cepr/cepr.shtml|
|Order Information:|| Email: |
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.:
- Constant, Amelie F. & Tien, Bienvenue N. & Zimmermann, Klaus F. & Meng, Jingzhou, 2011.
"China's Latent Human Capital Investment: Achieving Milestones and Competing for the Top,"
IZA Discussion Papers
5650, Institute for the Study of Labor (IZA).
- Constant, Amelie & Meng, Jingzhou & Tien, Bienvenue & Zimmermann, Klaus F, 2011. "China's Latent Human Capital Investment: Achieving Milestones and Competing for the Top," CEPR Discussion Papers 8376, C.E.P.R. Discussion Papers.
- Shang-Jin Wei & Yi Wu, 2001.
"Globalization and Inequality: Evidence from Within China,"
NBER Working Papers
8611, National Bureau of Economic Research, Inc.
- Wei, Shang-Jin & Wu, Yi, 2001. "Globalization and Inequality: Evidence from within China," CEPR Discussion Papers 3088, C.E.P.R. Discussion Papers.
- Greenwood, Jeremy & Jovanovic, Boyan, 1988.
"Financial Development, Growth, And The Distribution Of Income,"
88-12, C.V. Starr Center for Applied Economics, New York University.
- Greenwood, Jeremy & Jovanovic, Boyan, 1990. "Financial Development, Growth, and the Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1076-1107, October.
- Greenwood, J. & Jovanovic, B., 1990. "Financial Development, Growth, And The Distribution Of Income," University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers 9002, University of Western Ontario, The Centre for the Study of International Economic Relations.
- Jeremy Greenwood & Boyan Jovanovic, 1989. "Financial Development, Growth, and the Distribution of Income," NBER Working Papers 3189, National Bureau of Economic Research, Inc.
- Greenwood, J. & Jovanovic, B., 1988. "Financial Development, Growth, And The Distribution Of Income," RCER Working Papers 131, University of Rochester - Center for Economic Research (RCER).
- Putterman, Louis, 1992. "Dualism and Reform in China," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 467-93, April.
- Dwayne Benjamin & Loren Brandt & John Giles, 2004.
"The Evolution of Income Inequality in Rural China,"
William Davidson Institute Working Papers Series
2004-654, William Davidson Institute at the University of Michigan.
- Dennis Tao Yang & Hao Zhou, 1999.
"Rural-urban disparity and sectoral labour allocation in China,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 35(3), pages 105-133.
- Yang, Dennis T. & Hao Zhou, 1997. "Rural-Urban Disparity and Sectoral Labor Allocation in China," Working Papers 97-02, Duke University, Department of Economics.
- Dennis Tao Yang, 1999. "Urban-Biased Policies and Rising Income Inequality in China," American Economic Review, American Economic Association, vol. 89(2), pages 306-310, May.
- Oaxaca, Ronald, 1973.
"Male-Female Wage Differentials in Urban Labor Markets,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
- Sicular, Terry & Yue, Ximing & Gustafsson, Bjorn & Li, Shi, 2006.
"The Urban-Rural Income Gap and Inequality in China,"
Working Paper Series
RP2006/135, World Institute for Development Economic Research (UNU-WIDER).
- Terry Sicular & Yue Ximing & Björn Gustafsson & Li Shi, 2007. "The Urban-Rural Income Gap And Inequality In China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 93-126, 03.
- Ravi Kanbur & Xiaobo Zhang, 2004.
"Fifty Years of Regional Inequality in China: A Journey Through Central Planning, Reform and Openness,"
158, Institute for Social and Economic Change, Bangalore.
- Ravi Kanbur & Xiaobo Zhang, 2005. "Fifty Years of Regional Inequality in China: a Journey Through Central Planning, Reform, and Openness," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 87-106, 02.
- Kanbur, Ravi & Zhang, Xiaobo, 2004. "Fifty Years of Regional Inequality in China: A Journey through Central Planning, Reform, and Openness," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- John Knight & Lina Song, 2003. "Increasing urban wage inequality in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 597-619, December.
- Björn Gustafsson & Shi Li, 2000. "Economic transformation and the gender earnings gap in urban China," Journal of Population Economics, Springer, vol. 13(2), pages 305-329.
- Shujie Yao & Zongyi Zhang & Gengfu Feng, 2005. "Rural-urban and regional inequality in output, income and consumption in China under economic reforms," Journal of Economic Studies, Emerald Group Publishing, vol. 32(1), pages 4-24, January.
- Sylviane Guillaumont Jeanneney & Ping Hua, 2008. "Appreciation of the Renminbi and Urban-Rural Income Disparity in China," Revue d’économie du développement, De Boeck Université, vol. 16(5), pages 67-92.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Xin Meng, 1998. "Gender occupational segregation and its impact on the gender wage differential among rural-urban migrants: a Chinese case study," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 741-752.
- Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute for the Study of Labor (IZA).
- Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November.
- Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-71, July.
When requesting a correction, please mention this item's handle: RePEc:wsi:ceprxx:v:02:y:2013:i:01:p:1350002-1-1350002-29. 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: (Tai Tone Lim)
If references are entirely missing, you can add them using this form.