The Rural-Urban Income Divide: Microeconomics
The Rural-Urban Income Divide: Microeconomics
The chapter investigates and compares household incomes in rural and urban China, uses micro-analysis, and focuses on one point at a time. It states that the year chosen for the analyses was 1988 because it was the year that a national household survey was conducted by the Institute of Economics, Chinese Academy of Social Sciences (CASS), to investigate income distribution in China. The decomposition of the rural–urban income gap of China is also examined and its sources are probed. The decomposition of the rural–urban income gap is then disaggregated by province, permitting an analysis of interprovincial variation. The chapter also examines the inequality of urban income and the inequality of rural income, as well as the rural and urban wages from employment. It then discusses the rural–urban income inequality in perspective.
Keywords: income divide, microeconomics, rural income, urban income, income gap, income inequality
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