The Distribution Of Rural Incomes In China

Based on an analysis of a 1988 nationwide sample survey of 10,258 households, this book aims to offer insights into issues of rural inequality in China. The work focuses on the study of wealth rather than income as the primary measure.

Abstract: Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances.

Based on original data obtained from a purpose-designed nationwide household sample survey, the volume contains studies of the overall distribution of income, inequality and poverty in rural areas, wage employment in rural industries, urban wage inequalities, and the relationship between education and income. An appendix describes the household sample survey.

This book analyses the impact of the current economic reform on the income development of peasant households in the People's Republic of China. The research is based on detailed information derived from book-keeping records of the sample households of selected regions in central China, the national statistical network, local statistics and chronicles. Moreover, the basic tools of economic analysis are applied to the main problems of the Chinese rural economy in order to gain a better understanding of the current development of China.

This book approaches the issue of rural-urban inequality through fieldwork conducted in a specific township (Zuogang) in Qinggang County, part of Heilongjiang Province in northeastern China. Presenting painstaking fieldwork in a single location, it successfully illuminates fundamental aspects of the reality and the complexity of rural-urban inequality that cannot be found in macro-level studies, most of which are prepared by economists. The book offers a unique combination of rigorous economic analysis with insightful social and anthropological analysis, as well as revealing interviews with local government officials. This approach provides a rich tapestry of rural perceptions of rural-urban inequality. With in-depth analysis and empirical evidence on questions concerning the development and root causes of urban-rural disparities, the book significantly enriches our understanding of the widely discussed issue of rural-urban income inequality, but from the unique perspective of rural China.

Food, consumption, demand, agricultural research, fertilizer, land, water resources, infrastructure, domestic grain, international grain market, economy, business, markets, tariffs, environment, health, productivity, pollution, energy, industry, water, urban transportation, pension reform, elderly, education, employment, rural, urban, income, poverty.

The authors find that reform of the Hukou system has the most significant impact on aggregate economic activity, as well as income distribution. Whereas the land market reform primarily benefits the agricultural households, this reform's primary beneficiaries are the rural households currently sending temporary migrants to the city. By reducing the implicit tax on temporary migrants, Hukou reform boosts their welfare and contributes to increased rural-urban migration. The combined effect of both factor market reforms is to reduce the urban-rural income ratio dramatically, from 2.59 in 2007 under the authors' baseline scenario to 2.27. When viewed as a combined policy package, along with WTO accession, rather than increasing inequality in China, the combined impact of product and factor market reforms significantly reduces rural-urban income inequality. This is an important outcome in an economy currently experiencing historic levels of rural-urban inequality"--Abstract.