Creativity and Inequality: The Dual Path of China's Urban Economy?

39 Pages Posted: 3 May 2012

See all articles by Cathy Yang Liu

Cathy Yang Liu

Georgia State University - Andrew Young School of Policy Studies

Wen Xie

Georgia State University - Andrew Young School of Policy Studies

Date Written: May 3, 2012

Abstract

Utilizing Chinese data for the years of 1998, 2000, 2005, and 2008, this research traces the growth of the creative economy and the enlarging income inequality in China’s urban economy. While the creative sector now makes up close to 30 percent of China’s urban private employment, industry-based earnings disparity has also increased substantively. Provinces with larger creative economy also tend to have higher level of wage inequality among workers of the creative sector, the working sector, and the service sector. Several other factors, especially internal migration flow, size of manufacturing, and ownership structure in local economy, are found to be significantly linked to inequality as well.

Keywords: economic restructuring, knowledge economy, wage inequality, China

JEL Classification: J31

Suggested Citation

Liu, Cathy Yang and Xie, Wen, Creativity and Inequality: The Dual Path of China's Urban Economy? (May 3, 2012). Growth and Change, Forthcoming; Andrew Young School of Policy Studies Research Paper Series No. 2050234. Available at SSRN: https://ssrn.com/abstract=2050234

Cathy Yang Liu (Contact Author)

Georgia State University - Andrew Young School of Policy Studies ( email )

Andrew Young School of Policy Studies
Atlanta, GA 30303-3083
United States

Wen Xie

Georgia State University - Andrew Young School of Policy Studies ( email )

Andrew Young School of Policy Studies
Atlanta, GA 30303-3083
United States

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