IDEAS home Printed from https://ideas.repec.org/p/ags/widerw/295463.html
   My bibliography  Save this paper

Income Distribution during the Transition in China

Author

Listed:
  • Ping, Zhang

Abstract

This paper's goal is to increase the understanding of the inequality trends during the transitional period in China. From 1978 to 1995, China has been undergoing 18 years far-reaching economic system reform and opening to the outside world nationwide. During the transitional periods, the average household income per capita increased substantially and so did income inequality. Using time-series data from SSB, this paper discusses the changing shape of the income distribution for the population as a whole during the 18 years of transitional period, with special reference to the impact of major reform measures with large distributional implications. Also, on the basis of the cross-section dataset in 1988 and 1995, this paper decomposes inequality indices, using two decomposition methods, to separate components of household disposable income and decompose income inequality by sub-group population. The main findings of the paper are, first, the national income inequality, the inequality within and between urban and rural areas, and the regional inequality were widening. Second, household income in urban areas more and more depends on the market rather than the traditional distribution plan. Third, the fastest growing contributor is individual wage from township or village enterprises; on the other hand, the contribution of self-consumption of household products decreased significantly. Fourth, the largest contribution to changes in aggregate inequality is made by changes in within-group inequality rather than between-group. In general, income distribution in urban and rural areas in China is shifted more and more from the course of systematic transition to the course of development.

Suggested Citation

  • Ping, Zhang, "undated". "Income Distribution during the Transition in China," WIDER Working Papers 295463, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:ags:widerw:295463
    DOI: 10.22004/ag.econ.295463
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/295463/files/WP138.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.295463?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. Azizur Rahman Khan & Keith Griffin & Carl Riskin & Zhao Renwei, 1993. "Household Income and its Distribution in China," Palgrave Macmillan Books, in: Keith Griffin & Zhao Renwei (ed.), The Distribution of Income in China, chapter 1, pages 25-73, Palgrave Macmillan.
    2. ., 1993. "Income Distribution in a Perfectly Competitive Economy," Chapters, in: INCOME DISTRIBUTION IN A CORPORATE ECONOMY, chapter 2, pages 9-31, Edward Elgar Publishing.
    3. ., 1993. "The distribution of labor incomes: a survey," Chapters, in: STUDIES IN HUMAN CAPITAL, chapter 2, pages 32-68, Edward Elgar Publishing.
    4. Adelman, Irma & Sunding, David, 1987. "Economic policy and income distribution in China," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 444-461, September.
    5. ., 1993. "Income Distribution and Justice," Chapters, in: ETHICS AND ECONOMIC THEORY, chapter 9, pages 117-154, Edward Elgar Publishing.
    6. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, Enero.
    Full references (including those not matched with items on IDEAS)

    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. Aiguo, Lu, "undated". "Welfare Changes in China during the Economic Reforms," WIDER Working Papers 295319, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    2. Athia Yumna & M. Fajar Rakhmadi & M. Firman Hidayat & Sarah E. Gultom & Asep Suryahadi, "undated". "Estimating the Impact of Inequality on Growth and Unemployment in Indonesia," Working Papers 264, Communications Section.
    3. Rosas Martinez, Victor Hugo, 2024. "The Conscience Directing Evolution: The Limit to Econ Growth and Development; Smoothness and Existence of the Navier-Stokes," MPRA Paper 122307, University Library of Munich, Germany.
    4. Ping Zhang, 1997. "Income Distribution during the Transition in China," WIDER Working Paper Series wp-1997-138, World Institute for Development Economic Research (UNU-WIDER).
    5. Wang, Qingbin & Shi, Guanming & Zheng, Yi, 2000. "Changes In Income And Welfare Distribution In Urban China And Implications For Food Consumption And Trade," 2000 Annual meeting, July 30-August 2, Tampa, FL 21767, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Tóth, István György, 2003. "Jövedelemegyenlőtlenségek - tényleg növekszenek, vagy csak úgy látjuk? [Inequalities of income: are they or do they just seem to be increasing?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 209-234.
    7. Nancy Vandycke, 2001. "Access to Education for the Poor in Europe and Central Asia : Preliminary Evidence and Policy Implications," World Bank Publications - Books, The World Bank Group, number 13974, April.
    8. Juan Luis Londoño & Miguel Székely, 2000. "Persistent Poverty and Excess Inequality: Latin America, 1970-1995," Journal of Applied Economics, Universidad del CEMA, vol. 3, pages 93-134, May.
    9. Alberto Chilosi, 2014. "The Economic System as an End or as a Means, and the Future of Socialism: An Evolutionary Viewpoint," Palgrave Studies in the History of Economic Thought, in: Riccardo Bellofiore & Ewa Karwowski & Jan Toporowski (ed.), Economic Crisis and Political Economy, chapter 1, pages 10-28, Palgrave Macmillan.
    10. Iga Magda & Ewa Cukrowska-Torzewska, 2019. "Gender wage gap in the workplace: Does the age of the firm matter?," IBS Working Papers 01/2019, Instytut Badan Strukturalnych.
    11. Richard Pomfret, 1998. "Poverty in the Kyrgyz Republic," School of Economics and Public Policy Working Papers 1998-05, University of Adelaide, School of Economics and Public Policy.
    12. Giovanni Andrea Cornia, 2006. "Poverty, Inequality and Policy Affecting Vulnerable Groups in Moldova," Papers inwopa06/37, Innocenti Working Papers.
    13. Pastore, Francesco & Verashchagina, Alina, 2006. "Private returns to human capital over transition: A case study of Belarus," Economics of Education Review, Elsevier, vol. 25(1), pages 91-107, February.
    14. Elizabeth Brainerd & Olga Malkova, 2023. "Maternity benefits and marital stability after birth: evidence from the Soviet Baltic republics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(4), pages 2309-2345, October.
    15. Klugman, Jeni & Braithwaite, Jeanine, 1998. "Poverty in Russia during the Transition: An Overview," The World Bank Research Observer, World Bank, vol. 13(1), pages 37-58, February.
    16. Dimitris Mavridis & Pálma Mosberger, 2017. "Income Inequality and Incentives. The Quasi-Natural Experiment of Hungary 1914-2008," Working Papers halshs-02797438, HAL.
    17. Daniela Andrén & Thomas Andrén, 2015. "Gender and occupational wage gaps in Romania: from planned equality to market inequality?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    18. Zsuzsa Kapitany & Gyorgy Molnar, 2002. "Inequality and mobility analysis by the Hungarian Rotation Panel, 1993-98," CERS-IE WORKING PAPERS 0204, Institute of Economics, Centre for Economic and Regional Studies.
    19. Londoño, Juan Luis & Székely, Miguel, 1997. "Persistent Poverty and Excess Inequality: Latin America, 1970-1995," IDB Publications (Working Papers) 6092, Inter-American Development Bank.
    20. Alan B. Krueger & Jorn-Steffen Pischke, 1995. "A Comparative Analysis of East and West German Labor Markets: Before and After Unification," NBER Chapters, in: Differences and Changes in Wage Structures, pages 405-446, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    International Development;

    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:ags:widerw:295463. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.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.