Factor Decomposition of Rural Income Inequalities in China

A Chinese geographer explores changes in inter-provincial rural income inequality in China since the late-1970s economic reforms by decomposing it into different component factors based on the Gini index (more specifically, into contributions by different income sources: wages, household operations, properties, and transfers). The influence of each factor on inequality changes is further decomposed into its structure effects and its real inequality effects. Quantitative analysis then makes it possible to determine the relative influence of each component on changes in rural provincial inequality over time. Journal of Economic Literature, Classification Numbers: E250, O150, O180. 3 figures, 3 tables, 55 references