663 research outputs found
Impacts of Income Gap on Migration Decision in China
Using survey data from China, this article examines the determinants of rural to urban migrants' income. Specifically, it studies the effects of income gap on migration decision and its sources. The empirical study demonstrates that income gap significantly influences migration decision. Moreover, our results show that income level depends greatly on education level. By estimating urban to rural income gap, we find that the income differential between migrants and non-migrants is larger for women than for men, which suggests that women receive larger monetary returns as a result of migration. In terms of its decomposition, for men, the contribution of difference in attributes is more important than that of difference in the returns to attributes; for women, their income gap is mainly determined by the differences in returns to attributes.Sample selection, Income gap, China, Internal migration
The impact of remittances on rural poverty and inequality in China
Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances.Rural Poverty Reduction,Population Policies,Access to Finance,Inequality
Rising income inequality in China : a race to the top
Income inequality in China has risen rapidly in the past decades across regions, between rural and urban sectors, and within provinces. The dynamics of divergence across these sub-national areas have taken the form of a"race to the top"- meaning that all segments of the population, including the poor with low education in lagging inland rural areas, have experienced gains in average income. The largest gains have been registered by those with higher income and education in leading coastal urban areas. Using the China Economic, Population, Nutrition and Health Survey data of 1989 and 2004, we show that the most important factors explaining overall inequality are differential returns to schooling and sector of employment. A decomposition analysis based on household income determination shows that the increase in returns to education explains two-thirds of income changes in urban areas and one-sixth in rural areas. The widening income gaps are the consequence of higher growth in leading urban and coastal areas and that the skilled population has benefited more from the economic reforms carried out during the last 25 years. The authors argue that rising income inequality can be part of a normal process of development at a certain stage, and that the dynamics of spatial income divergence in the form of"a race to the top"can be desirable to some extent as it unleashes competitive pressure and creates incentives for investment in skills. Continuing to improve market efficiency and investing in people, in particular improving education service in lagging areas to poor people, are important for sustainable growth and equitable distribution in the long run.Rural Poverty Reduction,Inequality,Achieving Shared Growth,Population Policies,
Déterminants de la participation aux activités non-agricoles et du revenu des ménages ruraux : le cas de la Chine
Using rural household survey data from China, this paper examines the determinants of farmersâ non-farm activity participation decision and their income earning. The results show that education level contributes significantly to farmersâ factors non-farm activity participation and their outcomes. The land scarcity constitutes an important motivation to turn to non-farm sectors; nevertheless, the households relatively abundant in land do not necessarily specialize in agricultural production. Those households closer to urban areas show a higher propensity to participate in non-farm activity.China, Household income, Rural non-farm activity
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