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Ethnicity and Income in China: The Case of Ningxia

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  • Hiroshi Sato
  • Sai Ding

Abstract

Using a 2006 household survey from the Ningxia Hui autonomous region in China, this paper examines two aspects of the correlation between ethnicity and income: namely, differences in the returns to human capital and the effects of ethnicity- and religion-related social capital. The findings indicate ethnic disparity in the returns to human capital across rural and urban areas. In rural areas, the returns to human capital for the Hui workforce differ according to the place of economic activity (i.e. local employment or migration), whereas no ethnic disparity is found for the urban workforce. We also find that ethnicity- and religion-related social capital plays a significant role among the Hui in rural areas where the level of interethnic social interactions is lower. We use this to suggest that Muslim-oriented attitudes toward trust in social networks of rural Hui households positively and interactively affect income through ethnically open trust attitudes.

Suggested Citation

  • Hiroshi Sato & Sai Ding, 2012. "Ethnicity and Income in China: The Case of Ningxia," Global COE Hi-Stat Discussion Paper Series gd12-244, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:ghsdps:gd12-244
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    References listed on IDEAS

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    5. Li Shi & Ding Sai, 2013. "An Empirical Analysis of Income Inequality between a Minority and the Majority in Urban China: The Case of Ningxia Hui Autonomous Region," The Review of Black Political Economy, Springer;National Economic Association, vol. 40(3), pages 341-355, September.
    6. Indunil De Silva, 2009. "Ethnicity and sheepskin effects in the returns to education in Sri Lanka," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 8(1), pages 61-79, June.
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    Cited by:

    1. Yano, Go & Shiraishi, Maho, 2015. "Trade credit and ethnicity: Case of ethnic minority area in China," China Economic Review, Elsevier, vol. 36(C), pages 236-260.

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    More about this item

    Keywords

    ethnic minorities; Hui; household and personal income; China;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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