Structural Change and Income Distribution: Accounting for Regional Inequality in the People's Republic of China and its Changes During 195222012

Abstract

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The Determinants of Income Inequality in Bangka Belitung Province

“…It was in line with the findings of Lindert & Williamson (2001) showing that process of economic development transformation was the change of agricultural markets orientation from within the country to export, and not (as suggested by Kuznets) a shift from agriculture to manufacturing and services causing increased inequality. Furthermore, Wan et al (2017) was in contrast to Kuznets' (1955) hypothesis which focused on the inequality growth relationship, which was not formalized.…”

“…The model stated that structural change was driven by technology (for example, the emergence of information and communication technology and e-commerce), culture (for example, the increase demand of health food), institutions (e.g., reform and transparency), or policies (e.g., the privatization movement) caused a shock reallocation of resources across sectors and locations leading to an imbalance in supply and demand factors. Thus it caused changes in income distribution (Wan et al, 2017;Yue et al, 2011).…”

“…According to Lindert & Williamson (2001), the process of economic reform is a shift of the agricultural market from domestic market to export, and not the shift from agriculture to manufacturing and services which caused an increased inequality as stated by Kuznets. In addition, Wan et al (2017) focused on the growth-inequality relationship, which was not formalized. It is also different from convergence or catch-up literature, including Caselli et al (2012).…”

Accounting for changes in income inequality in China, 2002–2018: evidence from household survey data

“…Equation () can also be used to decompose a change in the Gini coefficient of total per capita income between two periods, , into contributions by various income sources, with the contribution of each income source further decomposed into a component that is due to a change in its share in total income, , and a component due to a change in its concentration rate, Following Wang et al (2019), it can be shown that where , , and and are, respectively, income source k 's concentration rate and its share in the total income at time t , and and are the corresponding variables at time t + 1 . In Equation (), the first term refers to the contribution to a change in the overall Gini G by a change in the share of income source k , and the second term refers to the contribution to the change in the overall Gini G by a change in the concentration rate of income component k .…”