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Urbanization and Inequality in Asia

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  • Kanbur, Ravi
  • Zhuang, Juzhong

Abstract

This paper provides a quantitative analysis of how the changing dual economic structure and urbanization affect inequality in Asia. Focusing on data for four countries—the Peoples’ Republic of China, India, Indonesia, and the Philippines—the paper asks three questions. First, how much of the past increase in inequality can be attributed to urbanization per se—the rising share of urban population, as opposed to other drivers related to the region's dual economic structure, such as the urban–rural income gap, inequality within the urban sector, and inequality within the rural sector? Second, how might urbanization affect these countries’ inequality in the future as its process continues? Third, moving forward, what is the relative importance of each of these drivers in containing rising inequality in Asia? It is hoped that the framework developed and calculations presented in this paper provide more insights into the dynamics of rising inequality in Asia and can help policy makers prioritize policy actions for confronting it. © 2013 Asian Development Bank and Asian Development Bank Institute.
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Suggested Citation

  • Kanbur, Ravi & Zhuang, Juzhong, 2013. "Urbanization and Inequality in Asia," Working Papers 180092, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:180092
    DOI: 10.22004/ag.econ.180092
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    References listed on IDEAS

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    1. Zhang, Xiaobo & Yang, Jin & Wang, Shenglin, 2011. "China has reached the Lewis turning point," China Economic Review, Elsevier, vol. 22(4), pages 542-554.
    2. Kanbur, Ravi, 2012. "Does Kuznets Still Matter?," Working Papers 128794, Cornell University, Department of Applied Economics and Management.
    3. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, vol. 41(1), pages 19-43, June.
    4. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
    5. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
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    More about this item

    Keywords

    International Development; Production Economics;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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