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Nonfarm activity and rural income inequality : a case study of two provinces in China

Author: Xubei Luo; Nong Zhu; World Bank.
Publisher: [Washington, D.C.] : [World Bank], [2006]
Series: Policy research working papers (Online), 3811.
Edition/Format:   eBook : International government publication : EnglishView all editions and formats
Summary:
"Nonfarm activity plays an increasingly important role in rural household income. Based on data from the Living Standards Measurement Study in the provinces of Hebei and Liaoning, the authors study the distribution of nonfarm income in rural China. First, they assume nonfarm income as an exogenous transfer to total income to decompose the Gini index. Second, they assume nonfarm income as a potential substitute for  Read more...
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Material Type: Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Xubei Luo; Nong Zhu; World Bank.
OCLC Number: 62896366
Notes: Title from PDF file as viewed on 1/12/2006.
Details: System requirements: Adobe Acrobat Reader.; Mode of access: World Wide Web.
Series Title: Policy research working papers (Online), 3811.
Responsibility: Xubei Luo, Nong Zhu.

Abstract:

"Nonfarm activity plays an increasingly important role in rural household income. Based on data from the Living Standards Measurement Study in the provinces of Hebei and Liaoning, the authors study the distribution of nonfarm income in rural China. First, they assume nonfarm income as an exogenous transfer to total income to decompose the Gini index. Second, they assume nonfarm income as a potential substitute for farm income to take household choices into account and simulate household income. The results show that nonfarm activity reduces rural income inequality by raising the income of poor households to a larger extent than that of rich households. Improving rural infrastructure and implementing universal basic education are critical to build up the capacity of households (in particular, poor households) to participate in nonfarm activity. Strengthening the links between farm activity and nonfarm activity is essential to optimize the contribution of nonfarm activity to pro-poor rural economic development."--World Bank web site.

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