Chi, Wei (2011): Capital Income and Income Inequality: Evidence from Urban China.
Download (517Kb) | Preview
Using urban household survey data collected by National Bureau of Statistics of China from 1988-2009, this study examines the distribution, composition, and changes of capital income and its contribution to income inequality. The data shows that capital income has increased considerably in past 20 years in urban China. Although the average value of capital income is still relatively low, the dispersion of capital income is significant, and for high-income earners capital income is substantial. Compared to other forms of income, capital income is distributed the most unequally, and its contribution to total income inequality has been growing. This study also examines capital income in China’s western, central, and eastern regions separately, and finds that capital income is highest and contributes the most to income inequality in the eastern region.
|Item Type:||MPRA Paper|
|Original Title:||Capital Income and Income Inequality: Evidence from Urban China|
|Keywords:||capital income; income inequality; regional income gaps; Gini coefficient|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs|
|Depositing User:||Wei Chi|
|Date Deposited:||04. Nov 2011 18:03|
|Last Modified:||12. Feb 2013 11:29|
Appleton, S., Song, L. N., Xia, Q. J., 2005. Has China crossed the river? The evolution of wage structure in urban china during reform and retrenchment. Journal of Comparative Economics 33: 644-663.
Benjamin, D., Brandt, L., Giles, J., 2005. The Evolution of income inequality in rural China. Economic Development and Cultural Change 53(4): 769-824.
Chi, W., Li, B. and Yu, Q. 2011. Decomposition of the increase in earnings inequality in urban China: A distributional approach. China Economic Review 22, 299-312.
Fräßdorf, A., Grabka, M.M., Schwarze, J., 2011. The impact of household capital income on income inequality—a factor decomposition analysis for the UK, Germany and the USA. Journal of Economic Inequality 9:35-56.
Gustafsson, B., Li, S., 2001a. The anatomy of rising earnings inequality in urban China. Journal of Comparative Economics 29: 118--135.
Gustafsson, B., Li, S., 2001b. The effect of transition on the distribution of income in China. Economics of Transition 9(3): 593--617.
Gottschalk, P., Smeeding, T.M., 1997. Cross-national comparisons of earnings and income inequality. Journal of Economic Literature 35(2): 633-687.
Guriev, S., Rachinsky, A., 2006. The evolution of personal wealth in the former Soviet Union and Central and Western Europe. United Nations University, UNU-WIDER research paper No. 2006/120.
Jäntti, M., 1997. Inequality in five countries in the 1980s: the role of demographic shifts, markets and government policies. Economica 64(255): 415-440.
Jenkins, S.P., 1995.Accounting for inequality trends: decomposition analyses for the UK, 1971-86. Economica 62(245): 29-63.
Kattuman, P., Redmond, G., 2001. Income inequality in early transition: the case of Hungary 1987-1996. Journal of Comparative Economics 29: 40-65.
Knight, J., Song, L., 1991. The determinants of urban income inequality in China. Oxford Bulletin of Economics and Statistics 53(2): 123-154.
Knight, J., Song, L., 2003. Increasing urban wage inequality in China: extent, elements and evaluation. Economics of Transition 11(4): 597-619.
Lerman, R.I., Yitzhaki, S., 1985. Income inequality effects by income source: a new approach and applications to the United States. The Review of Economics and Statistics 67(1): 151-156.
Meng, X., 2004. Economic restructuring and income inequality in urban China. Review of Income and Wealth 50(3): 357-379.
Milanovic, B. 1999. Explaining the increase in inequality during transition. Economics of Transition 7(2) 1999, 299-341.
Morduch, J., Sicular, T., 2002. Rethinking inequality decomposition with evidence from rural China, The Economic Journal 112: 94-106.
Pyatt, G., Chen, C. N. , Fei, J., 1980.The Distribution of Income by Factor Components. Quarterly Journal of Economics 95: 451-473.
Shorrocks, A.F., 1980. The class of additively decomposable inequality measures. Econometrica: 613-625.
Wan, G., 2004. Accounting for income inequality in rural China: a regression –based approach. Journal of Comparative Economics 32: 348-363.
Wan, G., Zhou, Z., 2005. Income inequality in rural China: regression-based decomposition using household data. Review of Development Economics 9(1): 107-120.
Available Versions of this Item
- Capital Income and Income Inequality: Evidence from Urban China. (deposited 04. Nov 2011 18:03) [Currently Displayed]