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An Analysis On The Degrees And Reasons Of Income Inequality In Urban And Rural China Using China Health And Nutrition Survey Data

Posted on:2011-09-11Degree:MasterType:Thesis
Country:ChinaCandidate:Q B DanFull Text:PDF
GTID:2189360308976361Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
The problem of income inequality in urban and rural China is one of focus problems all the time for officers and scholars. The problem not only involves in microeconomic affecting factors of the differences of individual characteristics between urban residents and rural residents, but also comes under the influence of Chinese intrinsic binary economic structure and thereof policy inclining. This thesis mainly investigates various factors affecting the problem of income inequality in urban and rural China using a large sample dataset, which comes from the 1991,1993,1997,2000,2004 and 2006's China Health and Nutrition Survey.The mainly analytic contents contain the following aspects: First, according to the sources of incomes, per total laboring income of urban and rural China is collected and decomposed into per laboring incomes and per nonworking incomes, which are used to analyze the differences of the items of incomes. Second, we comprehensively analyze the differences of basic property of workers (including age, sex, the state of marriage, the educated time and working experience), the distribution of all kinds of vocations, the types of working enterprises'ownership and regions in urban and rural China using descriptive statistic methods. Last but not the least, the affecting factors of the differences of urban and rural China is decomposed and quantitative analyzed by basing on Mincer Model and the method of wages decomposition and its improving method introduced by Ronald Oaxaca (1973).According to the empirical research, the conclusions are as follows: firstly, the absolute disparity of per total income of urban and rural China appeared a enlarging trend in the six years, which changed from 559.36 Yuan RMB in 1991 to 1404.58 Yuan RMB in 2006,and the ratio appeared a firstly expanding and then shrinking trend, which changed from 1.72 in 1991 to 1.64 in 1993 then to 1.33 in 2000 and then to 1.59 in 2006.The reason of the differences of urban and rural China is mainly caused by the disparity of per total nonworking incomes before 2000 years, and caused by the disparity of per total laboring incomes after 2000 years. The maximal disparity was 84% in 2004.In per laboring incomes, the incoming sources in city are mainly wages and welfare incomes, and the same incoming sources in the country are mainly the managing incomes by themselves. In per total nonworking incomes, the maximal ratio in city is the income of retirement, the same maximal ratio in the country is the other sources of cash. Secondly, according to the results of decomposing Oaxaca of the average of individual laboring incomes, the interpretation power of the basic individual characteristics appeared firstly strong and then weak, which varied from 8.76% in 1991 to 12.53% in 1997 and then to 9.1% in 2006, during which the educated time and laboring experience had a heavy weight, which is obviously stronger than the power of age, sex and the state of marriage. The disparity of distributed vocations in urban and rural China had the most powerful interpretation, and the ratio had been maintained 45%; the explanation power of the different enterprises'ownership appeared an expanding trend, and the highest ratio was 15.96% in 2004.The influence of the disparity of regions became more and more obvious. The ratio of the discrimination of census register basically maintained about 30%, the highest ratio was 44.16% in 1993. the preference shared by urban residents caused by the discrimination of census register had a clearly declining trend, which changed from 42.3% in 1991 to 20.31% in 2006, contrast to the urban residents, yet the loss suffered by rural residents caused by the discrimination of census register had a evident increase, the ratio changed in the nearby 10 percent. Finally, the thesis investigates separately the disparity of individual laboring incomes among the east, middle and west districts. The comparative results show that these factors of affecting individual incomes are different in the three districts.
Keywords/Search Tags:Inequality Income, Degree, Effecting Factors, Oaxaca Decomposition
PDF Full Text Request
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