Empirical Analysis on Income Inequality of Chinese Residents by Yunbo Zhou

By Yunbo Zhou

The topic of this e-book is discussing the source of revenue inequality of chinese language citizens, its swap and the criteria that influence it. during this e-book all types of quantitative equipment, together with decomposing Gini Coefficients strategy, Fei-Ranis technique, two-sectors version and different econometric types. a few certain positive aspects are that during this publication, a two-sectors version used to be manage to investigate the effect of inhabitants migration from city parts to rural components on source of revenue inequality of overall citizens, and the inverted U speculation used to be verified through time-series regression version. The inverted U speculation is supported via the switch of source of revenue inequality of chinese language overall citizens that is assorted from the realization of current reaches. in more, the effect of rent-seeking source of revenue on inequality used to be mentioned, an fiscal mode used to be based to give an explanation for the factors of rent-seeking actions in China’s current stage.

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In theory, extended polarization index has enriched our understanding of polarization, but due to its intricate structure and not being illustrative, it is seldom given priority in practical measurement. 3 Meaning of Polarization and Its Measurement 39 different income distribution patterns cross. A surprising parallel with Lorenz Curve. 4) Herein, n is the number of samples, m is the median income, xðiÞ stands for individual income of number i in an ascending sequence of income levels, y and g are two positive invariables, and g 2 ð0; 1Þ.

Likewise, this index is partial since it represents only the status of the low-income group. Income Worsening Index This index points to the ratio of 20% of the highest income to 20% of the lowest income. Its minimum value is 1, and the bigger the value, the larger the income inequality. Combining Kuznets measure and Ahluwalia index, the index is able to show a contrast between the high-income group and the low-income group, but 20 2 Concept of Income Distribution and Indexes and Methods for Measuring leaving out those in between.

One is W-mode indexes, first put forward by Wolfson (1994) and developed later by Wang and Tusi (2000), Chakravarty and Majumder (2001), and Rodriguez and Salas (2003). This type of index divides all members into two groups besides the median, highincome and low-income, measures how much the income of members of each group is deviated from the median, and sums up all the deviations. Another type of index is called ER index, first proposed by Esteban and Ray (1994) and later improved by Esteban et al.

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