Fleshing out the olive? Observations on income polarization in China since 1981
Martin Ravallion and
Shaohua Chen
China Economic Review, 2022, vol. 76, issue C
Abstract:
In a rare example of a national goal for income distribution besides reducing poverty (for which there is a broad consensus), China's leadership committed in 2021 to attaining a less polarized “olive-shaped” distribution. The paper argues that the Foster-Wolfson polarization curve and index are well suited to quantifying this goal. New estimates indicate that polarization has been on a rising trend since 1981, but with a de-polarizing reversal emerging around 2009. There is no robust time-series evidence of polarizing effects of economic growth, poverty reduction or population urbanization. Larger urban-rural gaps in mean incomes have been strongly polarizing.
Keywords: China; Polarization; Inequality; Growth (search for similar items in EconPapers)
JEL-codes: I32 O15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:76:y:2022:i:c:s1043951x22001298
DOI: 10.1016/j.chieco.2022.101871
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