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Xiaodong Lu and Guowei Cai

This paper studies the empirical relationship among factor endowment, trade openness and individual income distribution. Using panel data, we show that factor endowment characters, to some extent, explains income gap in China. First, land and Capital intensive provinces have a more equal income distribution while human capital and labor-intensive provinces have a less equal income distribution. Second, Trade openness has a significant effect on China’s income distribution; the interaction between a special endowment and openness has different effect on income distribution; we also show that FDI, economy development, unemployment and reform have considerable negative effect on income distribution. Our results are robust to various kinds of test.

YANG Kuisong

Around the founding of the People’s Republic of China, the income distribution system of party and government officials has experienced a great reform from the supply system featured by equalitarianism to the duty-graded salary system with strict ranks and wide gaps. This change runs against the convention of the Chinese Communist Party (CCP) and proposition of Marx Karl. Chairman Mao Zedong was never satisfied with this distribution system marked by strict ranks and tried to amend it. It amounted to the same at the end as his failure to prevent the generation of this system, even though it experienced “the Cultural Revolution.”

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Yiyong Yang and Zhenhe Chi

1 Introduction The issue concerning income distribution and the income gap in China has always been one of hottest topics in academic circles. According to research conducted by Huang Taiyan, the issue concerning income distribution and income gap ranked fourth among the top ten hot topics in China

Chi, Zhenhe and Yang, Yiyong

heavily influences economic and social development. If income distribution is not equal, members of some social classes will be thrown into poverty, which will cause numerous other social problems. Thus it...

Peter S.J. Chen

119 GROWTH AND INCOME DISTRIBUTION IN SINGAPORE* Peter S.J. Chen, Ph.D. Department of Sociology University of Singapore 1. Introduction In the process of development, the question of whether to have more rapid economic growth or to have a more equitable income distribution always becomes a

Hao Zhou and Wei Zou

Using a 1995–2004 panel data of Chinese urban residents, we investigate the dynamics of income distribution in cities. According to Kernel estimates of the relative income distribution of Chinese cities, we find that: (1) the national across-city distribution of per capita GDP exhibits an apparent unique-peak distribution in 1995 and an “emerging multiple-peak” one in 2004; (2) for prefecture-level cities, income distribution has evolved to an “apparent multiple-peak” distribution from a unique-peak one; (3) the income distribution of county-level cities maintains a unique-peak curve; (4) most of the income dynamics of urban residents originates from prefecture-and-higher-level cities. We sample three representative provinces and study the urban income dynamics respectively. The analysis suggests that within a single province, urban income distribution evolves from unique-peak to twin-peak curve; while among provinces, income convergence is evident for urban residents. In addition, we measure the incidence of poverty in cities based on our income dynamics analysis, and find that the ratios of people living below absolute poverty line have been decreasing at cities of all levels.

Ross Burkhart

254 Book Reviews / Comparative Sociology 7 (2008) 242–269 Aalberg, Toril , 2003, Achieving Justice: Comparative Public Opinion on Income Distribution , Leiden and Boston: Brill Academic Publishers, 257 pp., ISBN 9004129901 (hb), €29.00/$39.00. Toril Aalberg (Norwegian University of Science and

FANG Fuqian

This paper uses Chinese urban and rural panel data for 30 provinces, autonomous regions and municipalities (except Tibet and Taiwan) on the consumption of Chinese urban and rural households in 1995–2005, by constructiong a random effect model, to analyze the impact of sources of household’s consumption demand on the Chinese economy. The quantitative analysis reveals that the per capita disposable income of households is highly relevant in explaining households’ per capita consumption expenditure, in these eleven years, and that China’s consumption function was fairly stable. On the basis of flow of funds accounts (barter transaction) data in 1992–2004, the paper further reveals that, since 1997–1998, China’s consumer demand remains in the doldrums because of the following distribution and redistribution process of the national income: The Government’s share of total income and disposable income is becoming ever larger, while the share of households is declining. Aside from the result that a rise in the burden of personal tuition has a negative impact on per capita consumption demand for urban households, we have not found that housing reform or medical expenses significantly reduce consumer demand in China. We believe that low household consumption demand is caused mainly by the income redistribution between households, government, and corporations rather than the inequality in income distribution across households.

Yiyong, Yang and Zhenhe, Chi

Abstract Income distribution has become a hot button topic widely discussed across society. In this chapter, we will analyze changes to China’s income distribution in 2012. First, we will present analysis of changes to China’s primary income distribution, where the proportion of labor incomes to