Income Growth, Inequality and Poverty Reduction : A Case Study of Eight Provinces in China

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This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989-2004 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven, most rapidly in coastal areas, and among the educated. A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to the shift of employment into secondary and tertiary sectors.

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Measurement and Analysis of Poverty I320, Welfare and Poverty: Government Programs, Provision and Effects of Welfare Programs I380, Economic Development: Human Resources, Human Development, Income Distribution, Migration O150, Measurement of Economic Growth, Aggregate Productivity, Cross-Country Output Convergence O470, Socialist Systems and Transitional Economies: Factor and Product Markets, Industry Studies, Population P230, Socialist Systems and Transitional Economies: National Income, Product, and Expenditure, Money, Inflation P240, Socialist Institutions and Their Transitions: Consumer Economics, Health, Education and Training: Welfare, Income, Wealth, and Poverty P360

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