Understanding the Kuznets Process—An Empirical Investigation of Income Inequality in China: 1978–2011
Wenli Cheng () and
Yongzheng Wu ()
Additional contact information
Wenli Cheng: Monash University
Yongzheng Wu: CEMA, Central University of Finance and Economics
Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2017, vol. 134, issue 2, 631-650
Abstract This paper investigates income inequality in post-reform China using both national time series and provincial panel data from 1978 to 2011. We identify a Kuznets inverted-U relationship between economic development and income inequality and show that this relationship was driven by the process of urbanization. We estimate that the Kuznets turning point occurred in the mid-1980s, and argue that increased urbanization after the mid-1980s had the effect of narrowing income inequality but its effect was more than offset by other factors. In particular, we found that low productivity in agriculture relative to that of the economy as a whole (i.e., dualism) and inflation were significant contributing factors to income inequality. We also present evidence to suggest that secondary education and higher education may have different effects on income inequality at the national level and at the provincial level.
Keywords: Kuznets curve; Income inequality in China; Theil index; Urbanisation; Dualism (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11205-016-1435-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:134:y:2017:i:2:d:10.1007_s11205-016-1435-x
Ordering information: This journal article can be ordered from
Access Statistics for this article
Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino
More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Series data maintained by Sonal Shukla ().