The Urban-Rural Income Gap and Inequality in China March 16, 2006

Terry Sicular, Associate Professor of Economics, University of Western Ontario

Studies of China's inequality almost universally report that the gap between urban and rural household incomes in China is large, has increased over time, and contributes substantially to overall inequality. Whether or not concerns about the urban-rural income gap are justified depends, among other things, on the true magnitude of the gap and also on the factors that underlie the gap. Using a new and rich data, this study investigates the size of China's urban-rural income gap, the contribution of that gap to overall inequality, and the factors underlying the gap in 1995 and 2002. The analysis improves on past estimates by adjusting for spatial price differences and including migrants. It also measures the extent to which the urban-rural income gap is due to differences in household and individual characteristics, rather than the advantages of location of residence. Professor Sicular will present the key findings of this research undertaken with colleagues from the Chinese Academy of Social Sciences, University of Goteburg, and Beijing Normal University. China's Economy Colloquium Series

Terry Sicular received her Ph.D. in economics at Yale, has since held positions at Stanford and Harvard, and is currently at the University of Western Ontario where she teaches and conducts research on the economy of China. Her past research has addressed topics on China's rural economy such as the relationship between plan and market, household economic behavior, and labor supply, and has been published in a range of journals including China Quarterly, Journal of Political Economy, Economic Journal,and Journal of Public Economics. Her current research examines factors contributing to inequality in China, such as the urban-rural gap and education. Recent findings on this topic are forthcoming in an edited volume by Gustafsson, Björn, Li Shi and Terry Sicular (editors) titled Inequality and Public Policy in China, Cambridge University Press.

type:


CEAS Colloquium

date:


Thursday, March 16

time:


4:15 PM - 5:30 PM

location:


Philippines Room
Encina Hall, 3rd Floor
Stanford University

sponsor:


Center for East Asian Studies
Shorenstein APARC

contact:


[email protected]