Income inequality in China: Testing the Kuznets Hypothesis with National Time Series and Provincial Panel Data 1978-2011
This paper investigates income inequality in the post-reform Chinese economy using both national time series and provincial panel data 1978 to 2011. We identify a Kuznets inverted-U relationship between economic development and income inequality and show that this relationship was driven by the process of urbanization. We find that, after controlling for urbanization, low productivity in agriculture relative to that of the economy as a whole (i.e., dualism) and inflation appear to have been significant contributing factors to income inequality. There is also some evidence to suggest that, the expansion of higher education may have widened income inequality, but the expansion of secondary education may have narrowed it.
|Date of creation:||May 2015|
|Contact details of provider:|| Postal: Department of Economics, Monash University, Victoria 3800, Australia|
Web page: http://business.monash.edu/economics
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- Pedro Conceicao & James K. Galbraith, 2000. "Constructing Long and Dense Time-Series of Inequality Using the Theil Index," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 61-74, Winter.
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