Measuring Income Mobility, Income Inequality, and Social Welfare for Households of the People’s Republic of China
In most developing countries, income inequality tends to worsen during initial stages of growth, especially in urban areas. The People’s Republic of China (PRC) provides a sharp contrast where income inequality among urban households is lower than that among rural households. In terms of inclusive growth, the existence of income mobility over a longer period of time may mitigate the impacts of widening income inequality measured using crosssectional data. We explore several ways of measuring income mobility and found considerable income mobility in the PRC, with income mobility lower among rural households than among urban households. When incomes are averaged over 3 years and when adjustments are made for the size and composition of households, income inequality decreases. Social welfare functions are posited that allow for a trade-off between increases in income and increases in income inequality. These suggest strong increases in well-being for urban households in the PRC. In comparison, the corresponding changes in rural households are much smaller.
|Date of creation:||Dec 2008|
|Contact details of provider:|| Postal: P.O. Box 789, Manila|
Fax: (63-2) 636-2648
Web page: http://www.adb.org
More information through EDIRC
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.:
- Khor, Niny & Pencavel, John, 2006.
"Income Mobility of Individuals in China and the United States,"
IZA Discussion Papers
2003, Institute for the Study of Labor (IZA).
- Niny Khor & John Pencavel, 2006. "Income mobility of individuals in China and the United States," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(3), pages 417-458, 07.
- Niny Khor & John Pencavel, 2006. "Income Mobility of Individuals In China and the United States," Discussion Papers 05-009, Stanford Institute for Economic Policy Research.
- repec:dau:papers:123456789/1562 is not listed on IDEAS
- David M. Cutler & Lawrence F. Katz, 1992.
"Rising Inequality? Changes in the Distribution of Income and Consumption in the 1980s,"
NBER Working Papers
3964, National Bureau of Economic Research, Inc.
- Cutler, David M & Katz, Lawrence F, 1992. "Rising Inequality? Changes in the Distribution of Income and Consumption in the 1980's," American Economic Review, American Economic Association, vol. 82(2), pages 546-551, May.
- Woolard, Ingrid & Klasen, Stephan, 2004.
"Determinants of Income Mobility and Household Poverty Dynamics in South Africa,"
IZA Discussion Papers
1030, Institute for the Study of Labor (IZA).
- Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
- Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494.
- Frank Cowell & Julie Litchfield & Magda Mercader-Prats, 1999.
"Income inequality comparisons with dirty data: the UK and Spain during the 1980s,"
LSE Research Online Documents on Economics
2240, London School of Economics and Political Science, LSE Library.
- Frank A Cowell & Julie Litchfield, 1999. "Income Inequality Comparisons with Dirty Data: The UK and Spain during the 1980s," STICERD - Distributional Analysis Research Programme Papers 45, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- 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.
- Sicular, Terry & Yue, Ximing & Gustafsson, Bjorn & Li, Shi, 2006. "The Urban-Rural Income Gap and Inequality in China," WIDER Working Paper Series 135, World Institute for Development Economic Research (UNU-WIDER).
- Dwayne Benjamin & Loren Brandt & John Giles, 2003.
"The Evolution of Income Inequality in Rural China,"
benjamin-04-01, University of Toronto, Department of Economics.
- John Bound & Alan B. Krueger, 1989.
"The Extent of Measurement Error In Longitudinal Earnings Data: Do Two Wrongs Make A Right?,"
NBER Working Papers
2885, National Bureau of Economic Research, Inc.
- Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 1-24, January.
- Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
- Wu, Ximing & Perloff, Jeffrey M., 2004.
"China's Income Distribution Over Time: Reasons for Rising Inequality,"
Institute for Research on Labor and Employment, Working Paper Series
qt9jw2v939, Institute of Industrial Relations, UC Berkeley.
- Wu, Ximing & Perloff, Jeffrey M, 2004. "China's income distribution over time: reasons for rising inequality," CUDARE Working Paper Series 0977, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Wu, Ximing & Perloff, Jeffrey M., 2004. "China'S Income Distribution Over Time: Reasons For Rising Inequality," 2004 Annual meeting, August 1-4, Denver, CO 20061, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Wu, Ximing & Perloff, Jeffrey M., 2004. "China's Income Distribution over Time: Reasons for Rising Inequality," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt166747gz, Department of Agricultural & Resource Economics, UC Berkeley.
- Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Institutional and Structural Aspects," Working Papers 32722, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
- Gustafsson, Bjorn & Shi, Li, 2001. "The Anatomy of Rising Earnings Inequality in Urban China," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 118-135, March.
- Flemming, J.S. & Micklewright, John, 2000.
"Income distribution, economic systems and transition,"
Handbook of Income Distribution,
in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 14, pages 843-918
- John Flemming & John Micklewright, 1999. "Income Distribution, Economic Systems and Transition," Papers iopeps99/69, Innocenti Occasional Papers, Economic Policy Series.
- Demurger, Sylvie & Fournier, Martin & Li, Shi, 2006.
"Urban income inequality in China revisited (1988-2002),"
Elsevier, vol. 93(3), pages 354-359, December.
- Sylvie Démurger & Martin Fournier & Shi Li, 2006. "Urban income inequality in China revisited, 1988-2002," Post-Print halshs-00372106, HAL.
- Edward L. Glaeser & David C. Mare, 1994.
"Cities and Skills,"
NBER Working Papers
4728, National Bureau of Economic Research, Inc.
- Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Duncan, Greg J & Hill, Daniel H, 1989. "Assessing the Quality of Household Panel Data: The Case of the Panel Study of Income Dynamics," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(4), pages 441-452, October.
- Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October.
- Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309.
- Victor Nee, 2000. "The Role of the State in Making a Market Economy," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(1), pages 1-64, March.
- David Card & Thomas Lemieux & W. Craig Riddell, 2003. "Unionization and Wage Inequality: A Comparative Study of the U.S, the U.K., and Canada," NBER Working Papers 9473, National Bureau of Economic Research, Inc.
- Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
- Hussain, Athar & Lanjouw, Peter & Stern, Nicholas, 1994. "Income inequalities in China: Evidence from household survey data," World Development, Elsevier, vol. 22(12), pages 1947-1957, December.
- Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
- John Knight & Li Shi, 2006. "Three Poverties in Urban China," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 367-387, 08.
- Hyslop, Dean R & Imbens, Guido W, 2001.
"Bias from Classical and Other Forms of Measurement Error,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 19(4), pages 475-481, October.
- Dean R. Hyslop & Guido W. Imbens, 2000. "Bias from Classical and Other Forms of Measurement Error," NBER Technical Working Papers 0257, National Bureau of Economic Research, Inc.
- Loren Brandt & Dwayne Benjamin, 1999. "Markets and Inequality in Rural China: Parallels with the Past," American Economic Review, American Economic Association, vol. 89(2), pages 292-295, May.
When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:0145. 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: (Maria Susan M. Torres)
If references are entirely missing, you can add them using this form.