Accounting for income inequality in rural China: a regression-based approach

This paper proposes a framework for inequality decomposition in which inequality of the target variable, e.g., income, can be decomposed into components associated with any number of determinants or proxy variables in a regression equation. The proposed framework is general enough to be applied to a...

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Bibliographic Details
Published in:Journal of Comparative Economics 2004-06, Vol.32 (2), p.348-363
Main Author: Wan, Guanghua
Format: Article
Language:English
Subjects:
Box–Cox model
China
Decomposition
Income distribution
Income inequality
Income-generating function
Inequality
Inequality decomposition
Regional disparities
Regression analysis
Rural areas
Rural economics
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Description
Summary:This paper proposes a framework for inequality decomposition in which inequality of the target variable, e.g., income, can be decomposed into components associated with any number of determinants or proxy variables in a regression equation. The proposed framework is general enough to be applied to any inequality measure and it imposes few restrictions on the specification of the regression model. This generality is illustrated by quantifying root sources of regional income inequality in rural China using a combined Box–Cox and Box–Tidwell income-generating function. Journal of Comparative Economics32 (2) (2004) 348–363.
ISSN:0147-5967
1095-7227
DOI:10.1016/j.jce.2004.02.005