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Zhejiang Province, Rural Residents' Income Gap

Posted on:2005-12-30Degree:MasterType:Thesis
Country:ChinaCandidate:M WangFull Text:PDF
GTID:2206360152957256Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
Since the economics reform started in the early 1980s, China has gained rapid increment of national income, while its income distribution turned from planned economy's high equality to high inequality and became one of the few countries whose income inequality increased fastest in the world. The change of the rural residents' income inequality is especially distinguished and there has accumulated lots of research literature on it. But, most of the former researches carried out their analyses on traditional statistical data and macro-level, with few from the aspects of factors and macro-level. So, on the basis of redefining the income inequality and the data of 10 villages in Zhejiang, this paper decomposed the total income to labor income, entrepreneur capacity income, capital income, rural transfer income and the other income, and analyzed the rural residents' income inequality with a village and among villages from 1986 to 2003. The research content was divided into four parts.In the first part, this paper constructs a theory frame on the basis of reviewing and estimating the income distribution theories and former researches about the rural income inequality. Firstly, applying the new classical economics theory, this paper simplifies and abstracts the income inequality as the factor market's distribution. Then, this paper determines the influence variables of the rural residents' income inequality as residents' factor endowment and external market environment. At last, this paper analyzes the different ways of these two variables influencing the income inequality and income inequality change within a village and among villages. The following contents are to prove the theory advanced here through positive analysis.In part two, this paper analyzes the 10 villages' income inequality trend in the past 18 years through measures of every village's Gini Index and Social Welfare Index. The result indicates that every village's income inequality has increased a lot since the reform and experienced three evolving phases. Furthermore, no matter from the aspect of cross session, time series or panel data, the rural residents' income inequality within a village has a positive relationship with the income level. But, as long as the income level is high enough, the negative effects of the high income inequality can be offseted and the social welfare can be improved.The third part analyzes the income inequality within a village through the decomposition of Gini Index and the decomposition of the Gini Index's change. Firstly, on the basis of Gini Index decomposition, this paper analyzes the influence character of every factor on the income inequality within a village. Then, this paper firstly applies Shapley Value method to decompose the Gini Index' change in the three income inequality evolvingphases and the Gini Index' change is decomposed to every factor income's concentration index and income proportion finally. The result proves the view that external market environment changes the income inequality within a village through changing its income structure.The fourth part mainly analyzes the income inequality among villages. This paper measures the income inequality among villages from 1986 to 2003 and finds that the income inequality among villages also experience 3 phases. Then, similar with the analysis process in part three, this part also decomposes the Gini Index and the Gini Index' change. This result proves the view that external market environment influences. At last, to observe the income inequality within a village and among villages' role in the total income inequality, this paper decomposes the total income inequality to total inequality within a village and inequality among villages. The result indicates that the total income inequality with a village mainly contributes the total income inequality, but the income inequality among the villages influenced the total income inequality more and more, and has become the main resource of the increment of the total income inequality.
Keywords/Search Tags:Income Inequality, Rural Residents, Within a Village, Among the Villages, Factor Endowment, External Market Environment
PDF Full Text Request
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