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Why Do Poverty Rates Differ From Region to Region?: the Case of Urban China

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  • Yin Zhang
  • Guanghua Wan

Abstract

This paper proposes a semi-parametric method for poverty decomposition, which combines the data-generating procedure of Shorrocks and Wan (2004) with the Shapley value framework of Shorrocks (1999). Compared with the popular method of Datt and Ravallion (1992), our method is more robust to misspecification errors, does not require the predetermination of functional forms, provides better fit to the underlying Lorenz curve and incorporates the residual term in a rigorous way.

Suggested Citation

  • Yin Zhang & Guanghua Wan, 2005. "Why Do Poverty Rates Differ From Region to Region?: the Case of Urban China," WIDER Working Paper Series RP2005-56, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-56
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2005-56.pdf
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    References listed on IDEAS

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    1. Kanbur, Ravi & Zhang, Xiaobo, 2001. "Fifty Years of Regional Inequality in China: A Journey through Revolution, Reform and Openness," CEPR Discussion Papers 2887, C.E.P.R. Discussion Papers.
    2. Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, number 9780195136494.
    3. Fang, Cheng & Zhang, Xiaobo & Fan, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, vol. 13(4), pages 430-443, December.
    4. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
    5. James B. McDonald, 2008. "Some Generalized Functions for the Size Distribution of Income," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 3, pages 37-55, Springer.
    6. Rasmus Heltberg, 2002. "The Poverty Elasticity of Growth," WIDER Working Paper Series DP2002-21, World Institute for Development Economic Research (UNU-WIDER).
    7. Stanislav Kolenikov & Anthony Shorrocks, 2005. "A Decomposition Analysis of Regional Poverty in Russia," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 25-46, February.
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    Cited by:

    1. Bjorn A Gustafsson & Deng Quheng, 2011. "Di Bao Receipt and Its Importance for Combating Poverty in Urban China," Poverty & Public Policy, John Wiley & Sons, vol. 3(1), pages 1-32, March.
    2. Gustafsson, Björn Anders & Quheng, Deng, 2007. "Social Assistance Receipt and its Importance for Combating Poverty in Urban China," IZA Discussion Papers 2758, Institute of Labor Economics (IZA).
    3. Oluwakemi Adeola Obayelu, 2014. "Spatial Decomposition Of Poverty In Rural Nigeria: Shapley Decomposition Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 77-97, December.

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