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Household Income Dynamics in Rural China

Jyotsna Jalan and Martin Ravallion ()

No DP2002-10, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: It is well known in theory that certain forms of non-linear dynamics in household incomes can yield poverty traps and distribution-dependent growth. The potential implications for policy are dramatic: effective social protection from transient poverty will be an investment with lasting benefits, and pro-poor redistribution will promote aggregate economic growth. We test for non-linearity in the dynamics of household expenditures and incomes using panel data for rural south-west China. While we find evidence of non-linearity, there is no sign of a dynamic poverty trap.

Keywords: Equality and inequality; Income; Income distribution; Poverty; Rural development (search for similar items in EconPapers)
Date: 2002
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