Working Paper
Regional Income Inequality in Rural China, 1985-2002

Trends, Causes and Policy Implications

This paper depicts the trend of regional inequality in rural China for the period 1985-2002. The total inequality is decomposed into the so-called within- and between-components when China is divided into three regional belts (east, central and west). A regression-based accounting framework is then used to explore root sources of the rising inequality. Policy implications are discussed.