Household Income and its Distribution in China

Khan, Azizur Rahman; Griffin, Keith; Riskin, Carl; Renwei, Zhao

doi:10.1007/978-1-349-23026-6_2

Cited by 76 publications

(51 citation statements)

References 2 publications

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“…A large part of the literature on inequality in China focuses on spatial differences between coastal and interior regions, and across rural and urban areas (see, among others, Fleisher et al (2010), Kanbur and Zhang (2005), Chen and Fleisher (1996), Song (1999), Park (2008)). For insightful analysis of inequality in post-reform period see, among others, Shi et al (2013), Benjamin et al (2008), Gustafsson et al (2008), Khan et al (1999), Ravallion and Chen (1999), Griffin and Zhao (1993). Benjamin et al (2005) provide an in-depth and comprehensive analysis of the evolution of inequality during the transition in rural China.…”

Section: (2) Related Literaturementioning

confidence: 43%

Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China

Emran

Sun

2014

SSRN Journal

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This paper relaxes the single factor model of intergenerational educational mobility standard in the literature, and develops a research design to study the effects of parents' education and occupation on children's schooling. We use survey data from rural China that cover three generations and are not subject to coresidency bias. The evidence from recently developed matching and propensity score weighted estimators shows that the mean effects of parents education from the standard model miss substantial heterogeneity. Within the low education subsample, a son (girl) attains about 0.80 (0.60) years of additional schooling when born into a non-farm household compared to a farm household, and among the farming households, a child gains a one year of schooling when at least one parent has more than primary schooling. Having nonfarm parents, however, does not confer any advantages over the farmer parents if the farmers are relatively more educated, even though nonfarm households have significantly higher income. This suggests that income plays a secondary role to parental education. Estimates of cross-partial effects without imposing functional form show little evidence of complementarity between parental education and non-farm occupation. The role of family background remains stable across generations for girls, but for boys, family background has become more important after the market reform.Key Words: Educational Mobility, Inequality, Rural China, Nonfarm, Education and Occupation, Family Background, Heterogeneity, Complementarity, Market Reform, Gender Gap JEL Codes: O12, J621 We would like to thank Li Shi, Zhan Peng, and Song Jin for help with the CHIP survey data, and Matthew Lindquist and Forhad Shilpi for helpful comments and/or discussions. (1) IntroductionIncreasing inequality despite sustained economic growth and poverty reduction in last few decades has become a central policy issue in both developed and developing countries (Stiglitz (2012), Rajan (2010), Picketty (2014)). Inequality and its negative effects have also been high on the agenda of the Chinese policymakers in recent years. 2 There is a broad consensus among the policy makers and academic economists that education is one of the most important policy instruments to make the playing field level for children from the poor socio-economic background, and moderate the inequality generated by market reform. It is thus important to understand potential disadvantages faced by children from a poor socio-economic background in attaining the education and skills required in an increasingly globalized and skill-based labor market.The economics literature on intergenerational educational mobility has focused on parental education as the relevant indicator of family background for understanding intergenerational linkages (see Bjorklund and Salvanes (2011) for a recent survey, and on China, see, among others, Knight et al. (2013), Sato and Li (2007), Emran and Sun (2011)). This emphasis on parental education is eminently appropriate when the goal is...

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Section: (2) Related Literaturementioning

confidence: 43%

Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China

Emran

Sun

2014

SSRN Journal

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“…A logical extension of this paper is to decompose rural inequality into the contributions made by different sources of income. There is already a small, but growing, literature on this subject, e.g., Khan et al (1992), Rozelle (1994Rozelle ( , 1996, and Nongcun guding guancedian bangongshi (1997). The SSB data set for Guangdong and Sichuan used in this study consists of detailed time-series and cross-section figures on incomes from different sources and is, thus, ideal for the factor decomposition of rural inequality.…”

Section: Discussionmentioning

confidence: 99%

“…Up to 1990, grains produced by peasants for self-consumption were evaluated at official, and not market, prices. In so far as market prices are higher than official prices, consumption is underestimated (Khan et al, 1992). We try to re-estimate grain consumption at market prices following the procedures suggested by Chen and Ravallion (1996).…”

Section: Consumptionmentioning

confidence: 99%

Trends and Inequalities of Rural Welfare in China: Evidence from Rural Households in Guangdong and Sichuan

Tsui

1998

Journal of Comparative Economics

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“…It has been found that urban earnings inequality has been increasing since the mid-1990s, and this has led to rising income inequality within urban China (Gustafsson and Li, 2001;Khan and Riskin, 2005;Knight and Song, 2008). According to Li (2009, 2010), the Gini coefficient of earnings in urban China rose from 0.24 in 1988 to 0.30 in 1995, 0.34 in 2002and then to 0.38 in 2007.…”

Section: Background and Related Literaturementioning

confidence: 99%

Multivariate Tobit System Estimation of Education Expenditure in Urban China

Deng

Xue

2014

Singapore Econ. Rev.

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Using the 2007 education survey data in urban China, this paper measures the inequality of education expenditures, an indicator of education inequality, and analyzes the effect of household income on the components of education expenditures. Since the components of education expenditure are censored and inter-related, this paper runs a multivariate Tobit system regression of five categories of education expenditures. Our results imply that household income per capita positively affects expenditure on boarding, private tutoring and costs for selecting schools but does not affect expenditure on textbooks. In return, the inequality of education expenditures contribute to income inequality in urban China.

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Household Income and its Distribution in China

Cited by 76 publications

References 2 publications

Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China

Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China

Trends and Inequalities of Rural Welfare in China: Evidence from Rural Households in Guangdong and Sichuan

Multivariate Tobit System Estimation of Education Expenditure in Urban China

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