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Changes in regional inequality in rural China: decomposing the Gini index by income sources
Author(s) -
Wan Guang Hua
Publication year - 2001
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00148
Subject(s) - inequality , index (typography) , economic inequality , income inequality metrics , china , gini coefficient , economics , income distribution , construct (python library) , demographic economics , econometrics , rural area , development economics , geography , mathematics , political science , computer science , mathematical analysis , programming language , archaeology , world wide web , law
A new method is proposed to decompose inequality changes as measured by the Gini index into structural effects, real inequality effects and interactive effects. Application of the method to updated Chinese data reveals that structural effects represent the driving force underlying the increasing trend in regional income inequality in rural China. Policy implications are explored. In addition to these contributions, considerable efforts are made to construct the income data used in the article. Pitfalls in measuring income inequality in rural China are discussed.