Income distribution in urban China: An overlooked data inconsistency issue |
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| Affiliation: | 1. CIGI Global Economy, Canada;2. Iowa State University, USA;3. Texas A&M AgriLife Research, USA;4. City University of Hong Kong, Hong Kong;1. Department of Economics, The Chinese University of Hong Kong, Hong Kong;2. Department of International Economics and Trade, Nanjing University, Hong Kong;3. Institute of Global Economics and Finance, The Chinese University of Hong Kong, Hong Kong;1. School of Environment and Natural Resources, Renmin University of China, Beijing 100872, China;2. Department of Environmental Studies, State University of New York College of Environmental Science and Forestry, Syracuse, NY 13210, USA |
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| Abstract: | The Urban Household Income and Expenditure Surveys, conducted by the National Bureau of Statistics, are extensively explored in income distribution studies. However, we find that a survey coverage expansion that includes migrant residents in the urban sample may induce serious data inconsistency before and after the year 2002. To further unveil the inconsistency, we construct a random walk hierarchical beta-2 distribution model, estimated by the unscented Kalman filter, to investigate the magnitude of the structural break. Results show that the gaps of Gini coefficients and the shape of the distribution can be bridged by a counterfactual time series that coherently measures the urban China income distribution. |
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