Publication: Income Growth, Inequality and Poverty Reduction : A Case Study of Eight Provinces in China
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Date
2009
ISSN
1043951X
Published
2009
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This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989-2004 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven, most rapidly in coastal areas, and among the educated. A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to the shift of employment into secondary and tertiary sectors.
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In doing so, it presents evidence of a significant role for distance in determining these disparities, especially within the municipality's Southeast wing. The evidence of a role for density is more mixed, however, with findings of agglomeration economies depending on the method of estimation used. These results have important policy implications both for the municipality itself and China overall.Publication Rising Income Inequality in China : A Race to the Top(World Bank, Washington, DC, 2008-08)Income inequality in China has risen rapidly in the past decades across regions, between rural and urban sectors, and within provinces. The dynamics of divergence across these sub-national areas have taken the form of a "race to the top" - meaning that all segments of the population, including the poor with low education in lagging inland rural areas, have experienced gains in average income. 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This study uses survey data from the two large industrial cities Shenyang and Wuhan, covering the period 1998 to 2000, to evaluate retraining programs for over 2,000 workers two years after they had been observed as displaced and unemployed. Using a comparison group design, this study is, to our knowledge, the first evaluation of its kind in China. The evidence suggests that retraining helped workers find jobs in Wuhan, but had little effect in Shenyang. The study raises questions about the overall effectiveness of retraining expenditures, and it offers some directions for policy-makers about future interventions to help laid-off workers.
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