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Ethnicity and Income in China: The Case of Ningxia

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  • Sato, Hiroshi
  • Ding, Sai

Abstract

Using a 2006 household survey from the Ningxia Hui autonomous region in China, this paper examines two aspects of the correlation between ethnicity and income: namely, differences in the returns to human capital and the effects of ethnicity- and religion-related social capital. The findings indicate ethnic disparity in the returns to human capital across rural and urban areas. In rural areas, the returns to human capital for the Hui workforce differ according to the place of economic activity (i.e. local employment or migration), whereas no ethnic disparity is found for the urban workforce. We also find that ethnicity- and religion-related social capital plays a significant role among the Hui in rural areas where the level of interethnic social interactions is lower. We use this to suggest that Muslim-oriented attitudes toward trust in social networks of rural Hui households positively and interactively affect income through ethnically open trust attitudes.

Suggested Citation

  • Sato, Hiroshi & Ding, Sai, 2012. "Ethnicity and Income in China: The Case of Ningxia," CCES Discussion Paper Series 46, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
    • Handle: RePEc:hit:ccesdp:46
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    References listed on IDEAS

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    1. Bob Baulch & Thi Minh Hoa Nguyen & Thi Thu Phuong Nguyen & Thai Hung Pham, 2009. "Ethnic Minority Poverty in Vietnam," World Bank Other Operational Studies 28100, The World Bank.
    2. Mwabu, Germano & Schultz, T Paul, 1996. "Education Returns across Quantiles of the Wage Function: Alternative Explanations for Returns to Education by Race in South Africa," American Economic Review, American Economic Association, vol. 86(2), pages 335-339, May.
    3. Indunil De Silva, 2009. "Ethnicity and sheepskin effects in the returns to education in Sri Lanka: A conditional quantile analysis," International Journal of Development Issues, Emerald Group Publishing, vol. 8(1), pages 61-79, June.
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    Cited by:

    1. Yano, Go & Shiraishi, Maho, 2015. "Trade credit and ethnicity: Case of ethnic minority area in China," China Economic Review, Elsevier, vol. 36(C), pages 236-260.

    More about this item

    Keywords

    ethnic minorities; Hui; household and personal income; China;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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