Income Increases, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China

This paper examines the relationships between growth performance and income inequality in the urban and rural areas of eight Chinese provinces during the period of 1989-2004.It shows that incomes were considerably increasing during the time and poverty rates were reduced due primarily to rising income levels.Income rose most rapidly for rural residents in coastal provinces,followed by urban coastal areas.Inequality of income also widened during this period,most rapidly in urban areas of interior and coastal provinces.A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to employment in rural non-farm sectors.
JOUR
Xubei, Zhu Nong Luo
2008
Chinese Journal of Population Science
2
1419