Title: Development Trend of China's Income Distribution Inequality and Its Turning Point:Evidence from Nonparametric Specification Tests with Unbalanced Panel Data
Abstract: This paper computes the Gini coefficients for 31 provinces in China during 1995- 2011,on which the relationship between income inequality and economic development is studied. The empirical evidence shows that three inequality variables reflecting the income difference all have an inversed- U relationship with real GRP per capita,and income inequality faces a decreasing Kuznets turning point. In recent years the urban inequality has passed the turning point of the inversed- U curve and entered the right- half decreasing part of inversed- U curve beyond the symmetric axis. However,rural inequality and the inequality between the urban and rural still locate the increasing part of the inversed- U curves and do not attain the turning point with a decreasing rate for inequality to approach the turning point. Control variables can drive the symmetric axis of income inequality in the rural sector and the rural- urban difference to move to the left. Suitable policies to some extent can not only reduce the inequality degree but also drive inequality to enter the decreasing stage beforehand.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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