NDLI: The urban-rural income gap and inequality in China

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The urban-rural income gap and inequality in China

Content Provider	EconStor
Author	Sicular, Terry Yue, Ximing Gustafsson, Björn Li, Shi
Abstract	Using new household survey data for 1995 and 2002, we investigate the size of China’s urban-rural income gap, the gap’s contribution to overall inequality in China, and the factors underlying the gap. Our analysis improves on past estimates by using a fuller measure of income, adjusting for spatial price differences and including migrants. Our methods include inequality decomposition by population subgroup and the Oaxaca- Blinder decomposition. Several key findings emerge. First, the adjustments substantially reduce China’s urban-rural income gap and its contribution to inequality. Nevertheless, the gap remains large and has increased somewhat over time. Second, after controlling for household characteristics, location of residence remains the most important factor underlying the urban-rural income gap. The only household characteristic that contributes substantially to the gap is education. Differences in the endowments of, and returns to, other household characteristics such as family size and composition, landholdings, and communist party membership are relatively unimportant. – China ; urban-rural inequality ; income
File Format	PDF
ISBN	929190919X
Language	English
Publisher	The United Nations University World Institute for Development Economics Research (UNU-WIDER)
Publisher Date	2006-01-01
Publisher Place	Helsinki
Access Restriction	Open
Rights Holder	http://www.econstor.eu/dspace/Nutzungsbedingungen
Subject Keyword	Regionale Einkommensverteilung Stadt-Land-Beziehung China Personal Income, Wealth, and Their Distributions Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
Content Type	Text
Resource Type	Article

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