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

40 Pages Posted: 6 Mar 2014

See all articles by Chor-Ching Goh

Chor-Ching Goh

The World Bank

Xubei Luo

World Bank

Nong Zhu

University of Quebec at Montreal (INRS-UCS)

Date Written: January 3, 2014

Abstract

This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989-2004 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven, most rapidly in coastal areas, and among the educated. 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 the shift of employment into secondary and tertiary sector.

Keywords: Income growth, Inequality, Poverty, China

JEL Classification: O15, O53, P36

Suggested Citation

Goh, Chor-Ching and Luo, Xubei and Zhu, Nong, Income Growth, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China (January 3, 2014). CIRANO - Scientific Publications 2014s-03, Available at SSRN: https://ssrn.com/abstract=2403826 or http://dx.doi.org/10.2139/ssrn.2403826

Chor-Ching Goh

The World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Xubei Luo

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Nong Zhu (Contact Author)

University of Quebec at Montreal (INRS-UCS) ( email )

P.O. Box 8888, Downtown Station
Succursale Centre Ville
Montreal, Quebec H3C 3P8
Canada

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