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Changes in regional inequality in rural China: decomposing the Gini index by income sources

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  • Wan, Guang Hua

Abstract

A new method is proposed to decompose inequality changes as measured by the Gini index into structural effects, real inequality effects and interactive effects. Application of the method to updated Chinese data reveals that structural effects represent the driving force underlying the increasing trend in regional income inequality in rural China. Policy implications are explored. In addition to these contributions, considerable efforts are made to construct the income data used in the article. Pitfalls in measuring income inequality in rural China are discussed.

Suggested Citation

  • Wan, Guang Hua, 2001. "Changes in regional inequality in rural China: decomposing the Gini index by income sources," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-21.
    • Handle: RePEc:ags:aareaj:117472
    DOI: 10.22004/ag.econ.117472
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    References listed on IDEAS

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