Title Inequality in China revisited. The effect of functional distribution of income on urban top incomes, the urban-rural gap and the Gini index, 1978-2015
External publication No
Means China Econ. Rev.
Scope Article
Nature Científica
JCR Quartile 2
SJR Quartile 1
JCR Impact 1.80000
SJR Impact 1.07700
Area International
Web https://www.scopus.com/inward/record.uri?eid=2-s2.0-85006969115&doi=10.1016%2fj.chieco.2016.11.006&partnerID=40&md5=d5b52f2f5108160dec5bfaf3f41a7f31
Publication date 01/02/2017
ISI 000394631600007
Scopus Id 2-s2.0-85006969115
DOI 10.1016/j.chieco.2016.11.006
Abstract Most analyses explain the increase in China's overall inequality during the reform period principally by means of the expansion of urban-rural income gap. This paper tries to state a relationship between functional distribution of income and China's Gini index. After presenting the main theoretical contributions that clarify the general relationship among those variables, we describe the mechanism that has connected them during the last decades in the Chinese economy. There exists a link between falling wage share, rising urban households' top incomes, urban-rural income gap and the Gini coefficient. These relationships are analysed for both the pre and post-crisis periods. After estimating the main relationships, the paper ends with a discussion on the ability of potential redistributive policies to reverse this pattern of inequality. (C) 2016 Elsevier Inc. All rights reserved.
Keywords Factor shares; Labour share; Top incomes; Rural-urban gap; Gini index
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