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Analysis of Stochastic Dominance Ranking of Chinese Income Distributions by Household Attributes


  • Esfandiar Maasoumi
  • Almas Heshmati


In this paper, we employ stochastic dominance analysis on Chinese Household Nutrition Survey (CHNS) data to investigate the inequality and relative welfare levels in China over time and among population subgroups. We find that from the period of 2000 to 2009, welfare has been continuously improved along with Chinese economic development and growth. Our pairwise comparison of population subgroups shows that there is no dominance relation between subgroups for household type, gender of households head, and age cohorts. While married group and non-child rearing group second order dominate single/divorced group and child rearing group, showing higher level of welfare in the former groups. Also, we find inequality in subgroups with different educational levels and household sizes that the groups with a higher level of education and smaller size of household tend to be better off than their counterparts.

Suggested Citation

  • Esfandiar Maasoumi & Almas Heshmati, 2013. "Analysis of Stochastic Dominance Ranking of Chinese Income Distributions by Household Attributes," Emory Economics 1308, Department of Economics, Emory University (Atlanta).
  • Handle: RePEc:emo:wp2003:1308

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    References listed on IDEAS

    1. Michael Sattinger (ed.), 2001. "Income Distribution," Books, Edward Elgar Publishing, volume 0, number 2018.
    2. Esfandiar Maasoumi & Almas Heshmati, 2000. "Stochastic dominance amongst swedish income distributions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 287-320.
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    4. Hooi Hooi Lean & Ma. Rebecca Valenzuela, 2012. "Inequality in Australia 1983-2004: A Stochastic Dominance Approach," Monash Economics Working Papers 06-12, Monash University, Department of Economics.
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    6. 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, March.
    7. Ximing Wu & Jeffrey M. Perloff, 2005. "China's Income Distribution, 1985-2001," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 763-775, November.
    8. Xiaobo Zhang & Kevin Honglin Zhang, 2002. "Regional Inequality," Chapters,in: The Globalization of the Chinese Economy, chapter 8 Edward Elgar Publishing.
    9. 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, February.
    10. Gordon Anderson & Ying Ge, 2009. "Intercity Income Inequality Growth and Convergence in China," Journal of Income Distribution, Journal of Income Distribution, vol. 18(1), pages 70-89, March.
    11. Millimet Daniel L & Wang Le, 2006. "A Distributional Analysis of the Gender Earnings Gap in Urban China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-50, February.
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    Cited by:

    1. Sheung-Chi Chow & Ma. Rebecca Valenzuela & Wing-Keung Wong, 2016. "New Tests for Richness and Poorness:A Stochastic Dominance Analysis of Income Distributions in Hong Kong," Monash Economics Working Papers 25-16, Monash University, Department of Economics.

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