Income Distribution in Small Rural Chinese Communities

1976 ◽  
Vol 68 ◽  
pp. 797-816 ◽  
Author(s):  
Marc Blecher

The issue of equality has become the focus of increasing attention in both China and the west in the past several years. But the empirical basis for analyzing the extent and nature of equality in modern China remains weak, relying as it has on impressions and scattered statistics brought back by visitors. The most systematic summary of available data on one form of equality – income distribution – is Professor Martin Whyte's recent article in The China Quarterly (No. 64) entitled “Inequality and stratification in China.” Whyte's measure of inequality is the ratio of the income of the highest earner to that of the lowest. In his treatment of rural income, Whyte reports intra-team ratios for 18 communes visited by Keith Buchanan as around 3:1, a ratio of 14:1 for Liu-lin village visited by Jan Myrdal in 1962, and 3:1 or 4:1 for villages in his own interview research. On the basis of this kind of data, Whyte concludes that income inequality within China's production teams is relatively low but not outstandingly so in comparison with pre-1949 China or with other Asian countries. He suggests that the “modest” level of income inequality in rural China today may be as much the result of a relatively equal distribution before 1949 as of post-Liberation agricultural development and redistribution of the means of production.

2022 ◽  
Vol 11 (1) ◽  
Author(s):  
Monica Addison ◽  
Kwasi Ohene-Yankyera ◽  
Patricia Pinamang Acheampong ◽  
Camillus Abawiera Wongnaa

Abstract Background Government of Ghana’s effort to reduce income inequality consistently poses a major challenge to public policy formulation. The promotion and dissemination of agricultural technologies as a pathway out of income inequality in rural Ghana have received widespread support. Yet, knowledge about the impact of agricultural technologies on rural income inequality remains low. The objective of the study is to evaluate the link between the uptake of improved rice technologies and income distribution in the study area. Methods This paper uses a survey data from 917 smallholder rice producers in selected communities in Ghana. The study employs the Bourguignon, Fournier, and Gurgand (BFG) selection bias correction model, a two-stage model, to empirically analyse the role of agricultural technologies in rural income distribution. Results The empirical result shows that education, farm size, land ownership, participation in relevant extension training programmes enhance adoption, but gender (female) inhibits uptake of the selected technologies. The empirical result further shows that the uptake of the improved rice seed and fertilizer increases rice farmers’ net revenue significantly. The result further indicates that farmers’ choice of the selected agricultural technologies decreases the sample population income inequality, indicating the uptake of the technologies has an equalizing effect on rice farmers’ income distribution. Conclusion The study concludes that the use of the selected technologies has potential to fight rural poverty in Ghana. The findings have implications for National Development Planning Commission (NDPC) agenda of redistribution of wealth in Ghana.


1990 ◽  
Vol 50 (4) ◽  
pp. 807-827 ◽  
Author(s):  
Loren Brandt ◽  
Barbara Sands

The article reexamines the connection between rural landownership and income distribution in light of recent evidence suggesting economic growth in China in the early twentieth century. The study utilizes a government-organized national survey of landholding and income-earning in 1930s’ China and three household-level village surveys conducted by Japanese researchers in the 1930s. Our investigations produce evidence contrary to the currently held view of substantial (and increasing) income inequality. We suggest an alternative scenario of economic opportunities.


1985 ◽  
Vol 24 (3-4) ◽  
pp. 385-403 ◽  
Author(s):  
Faiz Mohammad ◽  
Ghulam Badar

The main objective of this paper is to study the rural income distribution in Pakistan by determining income accruing to farm and non-farm households from various assets held by them. Most of the existing literature on income distribution in Pakistan [3; 4; 8; 10; 12; 14; 17] focuses either on aggregate income or only on income from crops and classifies rural households by their income level. It ignores the internal structure of income as well as one of the main distinguishing features of rural households, namely their relation to land. In a developing country, however, the internal structure of income is likely to change with changes in the level of income. It is therefore important to assess the contribution of an individual factor (asset) to the overall income of a household and its impact on income inequality. Moreover in the case of Pakistan where land is becoming increasingly scarce for small farmers [7; II] it should be interesting to know how these farmers are trying to "fight back" the pressure on their land with alternative sources of income.


Author(s):  
Elizabeth Anderson ◽  
Ing-Haw Cheng ◽  
Harrison Hong

Bill Gates recently argued that philanthropy by households at the top of the income distribution might help ameliorate income inequality, and that tax policies should take this into account. Much of the research in economics on giving has been focused on middle-income households, so we know very little about the motives for giving by the very rich. We provide some initial evidence on what drives the giving of the richest Americans. First, we extrapolate anthropological evidence on how status concerns might influence philanthropy. Second, since the richest own a significant amount of equity, we use the Jobs and Growth Tax Relief Act of 2003 to see how their giving responded to unanticipated tax cuts, particularly for dividends. Third, we consider the welfare implications of philanthropy as opposed to alternative models for redistributing the wealth of the extremely rich.


2020 ◽  
Vol 71 (1) ◽  
pp. 1-14
Author(s):  
Sugata Marjit ◽  
Reza Oladi ◽  
Punarjit Roychowdhury

AbstractMotivated by recent insights from behavioral economics and social psychology, we present a theory of trade that seeks to explain inter-industry trade between countries that are similar in their production sides, but differ in their income distribution. By assuming status-dependent preferences that are non-homothetic, we show that income inequality differential can be a basis for inter-industry trade between otherwise similar economies.


2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.


2016 ◽  
Vol 16 (2) ◽  
pp. 1147-1167
Author(s):  
Ensar Yılmaz

Abstract This paper aims to search links between market imperfections and functional income distribution. For this purpose we construct a two-sector model – wage goods and luxury goods producing sectors – incorporating imperfections of the product and labor markets under income inequality. In a structure with interdependent and partially monopolistic and competitive markets, we analytically trace up the effects of the changes in power relations proxied by the degree of mark-ups in the product and labor market. The model shows that price and wage mark-ups in two sectors have crucial income distribution implications for the agents in the economy to varying extents. It also demonstrates the effect of the existence of the differentiated consumption patterns arising from income inequality on income distribution. Furthermore, it seems that unemployment level creates externalities on wage rate and on corporate taxes of firms.


2017 ◽  
Vol 17 (3) ◽  
pp. 651-685 ◽  
Author(s):  
Gilberto Antonelli ◽  
Pinuccia P Calia ◽  
Giovanni Guidetti

Abstract The article analyses the role of institutions in the determination of income inequality in a sample of OECD countries. Basing on the seminal approach by Amable, the article discusses the theoretical definition of model of capitalism. The basic idea is that each model of capitalism is defined by the cobweb of complementary relationships established among different institutions. Using a set of statistical indicators of the operation of institutions in two different years, 1995 and 2010, the empirical analysis points out five models of capitalism and exhibits how their composition has changed in this lapse of 15 years. In the following sections of the article, we investigate the role played by the model of capitalism in the determination of income distribution, measured through a standard Gini index. After controlling for a set of variables, the econometric evidence shows that different models of capitalism present significantly different levels of income inequality.


2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.


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