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Recent evolution of inequality in East Asia

Gaurav Datt and Thomas Walker

Applied Economics Letters, 2004, vol. 11, issue 2, 75-79

Abstract: This study uses a decomposition of the Theil inequality index across eight countries to examine the recent evolution of inequality in East Asia. It is found that inequality in the region rose between 1990 and 1997, but that the increase was driven by higher inequality within countries, rather than between them. The most significant contribution to the overall rise in regional inequality came from urban China, where inequality doubled between 1990 and 1997. Our analysis suggests that policies to tackle inequality should be aimed at national and sub-national levels, and particularly at addressing growing rural-urban disparities.

Date: 2004
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DOI: 10.1080/1350485042000200141

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