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Income growth, inequality and poverty reduction: A case study of eight provinces in China
Authors:Chor-ching GOH  Xubei LUO  Nong ZHU  
Institution:aThe World Bank, East Asia and Pacific Region, Poverty Reduction and Economic Management Department, United States;bINRS-UCS, University of Quebec, Canada
Abstract:This paper examines the growth performance and income inequality in eight Chinese provinces during the period of 1989–2004 using the China Health and Nutrition Survey data. It shows that income grew for all segments of the population, and as a result, poverty incidence has fallen. However, income growth has been uneven, most rapidly in coastal areas, and among the educated. A decomposition analysis based on household income determination suggests that income growth can largely be attributed to the increase in returns to education and to the shift of employment into secondary and tertiary sectors.
Keywords:Income growth  Inequality  Poverty  China
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