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  • Author: Shi Li, Ximing Yue, Terry Sicular, Bj√∂rn Gustafsson
  • Publication Date: 11-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Using new household survey data for 1995 and 2002, we investigate the size of China's urban-rural income gap, the gap's contribution to overall inequality in China, and the factors underlying the gap. Our analysis improves on past estimates by using a fuller measure of income, adjusting for spatial price differences and including migrants. Our methods include inequality decomposition by population subgroup and the Oaxaca-Blinder decomposition. Several key findings emerge. First, the adjustments substantially reduce China's urban-rural income gap and its contribution to inequality. Nevertheless, the gap remains large and has increased somewhat over time. Second, after controlling for household characteristics, location of residence remains the most important factor underlying the urban-rural income gap. The only household characteristic that contributes substantially to the gap is education. Differences in the endowments of, and returns to, other household characteristics such as family size and composition, landholdings, and communist party membership are relatively unimportant.
  • Topic: International Relations, Development, Human Rights
  • Political Geography: China, Asia
  • Author: Min-Dong Paul Lee
  • Publication Date: 06-2006
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: This study attempts to convey an accurate and dynamic account of educational inequality in China during the last decade. The study finds that there is clear evidence of rapid expansion of education, and younger students all over China are benefiting from the expansion. One of the most notable achievements is the virtual elimination of gender bias against girls in educational attainment. However, analysis of province-level school enrolment data over the last decade shows evidence of persistent regional inequality of educational attainment. Students from inland provinces continue to face strong structural inequality in educational opportunity, and this structural inequality becomes more pronounced as they progress to higher grades. Moreover, inter-cohort analysis reveals that the inter-provincial inequality in upper grades is increasing for younger cohort of students, meaning that educational inequality in China is deteriorating further. Lastly, a decomposition analysis shows that the causes of inter-provincial educational inequality are quite complex and cannot simply be explained by the urban-bias hypothesis that is often suggested as the main source of income inequality.
  • Topic: Education, Human Rights, Poverty
  • Political Geography: China, Asia