| Publication |
2011.
|
| Summary/Abstract |
Extending the income dynamics approach in Quah (2003), the present paper studies the enlarging income inequality in China over the past three decades from the viewpoint of rural-urban migration and economic transition. We establish non-parametric estimations of rural and urban income distribution functions in China, and aggregate a population-weighted, nationwide income distribution function taking into account rural-urban differences in technological progress and price indexes. We calculate 12 inequality indexes through non-parametric estimation to overcome the biases in existing parametric estimation and, therefore, provide more accurate measurement of income inequality. Policy implications have been drawn based on our research.
|