INCOME DISTRIBUTION OF RURAL HOUSEHOLDS IN MEXICO

Agrociencia ◽  
2021 ◽  
Vol 55 (7) ◽  
pp. 627-643
Author(s):  
Roberto Gallardo Del Ángel ◽  
Mario Miguel Ojeda Ramírez ◽  
Cecilia Cruz López

Despite the efforts to reduce poverty in rural municipalities income inequality persists in Mexico. This study presents an analysis on rural household income distribution in the country, since it is argued that conditional federal transfers fail on improving income distribution among rural households. The hypothesis stated that, because of local public goods are also part of individual budget constraints, it is rational to think that an expansion in the provision of local public goods will increase total income and, if such public goods are financed with conditional grants that target low-income groups, it is expected that income inequality may decrease. Thus, the objective was to classify rural municipalities in order to observe which among them have benefited from federal grants and those that did not, finding the reasons why assuming grants are accepted as an instrument contributing to reduce poverty and income inequality in recent years. Each group was analysed as a cluster to observe the effect of federal transfers on rural household income distribution. Main results showed that municipalities with rural low income-inequality and better economic development indicators improve income distribution when obtaining unconditional grants. This means that, in such cases, those transfers designed to reduce poverty also reduce rural income inequality. But that was not the case for the high income-inequality groups, where conditional grants did not have any effect on inequality and, in some cases, inequality increased. For the rural high income-inequality group, unconditional grants showed not to have a positive effect on reducing inequality. The clustering and regression analyses revealed large heterogeneity in the rural areas in terms of income and economic development.

Author(s):  
Yue Chim Richard Wong

It is a mistake to believe that the minimum wage helps low-income households, the workers, and, to a lesser extent, even among the high-income households. For Hong Kong to genuinely address poverty, it is far more important to study much more comprehensively the real incidence and causes of poverty and not let politics get in the way. The provision of a basic income is a far better policy than a minimum wage. Has minimum wage made a difference in helping low-income households and reducing income inequality? What effect has it had on labor market employment and unemployment?


Author(s):  
LI Xuehui ◽  
LI Zhi ◽  
WANG Zhengxin

Based on the micro-data from the 2013 Chinese Household Income Project (CHIP) Survey, the authors use a Quadratic Almost Ideal Demand System (QUAIDS) model to simulate and measure the impacts on the welfare of urban and rural households with different incomes after a carbon tax at 50[Formula: see text]RMB/ton was levied in China. The results show that the collection of carbon tax will increase households’ consumer spending to varying degrees. In urban areas, the carbon tax exerts the greatest impact on low-income households, followed by high-income households; while in rural areas, it has the most significant effects on high-income households and the least on low-income households. On the whole, carbon tax’s impact on urban households is greater than that on rural households. To a certain extent, it can help the household income inequality change for the better and narrow the urban–rural income gap. Since the carbon tax does not act on the distribution of Chinese household income in a simply regressive or progressive way, the authors believe that China should implement supporting policies such as tax subsidies or tax refund as supplements to carbon taxation in an effort to establish a mechanism for cyclic utilization of carbon tax revenue.


Land ◽  
2021 ◽  
Vol 10 (8) ◽  
pp. 781
Author(s):  
Congjia Huo ◽  
Lingming Chen

With the continued development of the economy, the income gap among Chinese rural households continues to widen. The land system plays a decisive role in developing “agriculture, rural areas and farmers” and land circulation is a factor in the increase in income inequality among farm households. Based on the 2013 China Household Income Project (CHIP), this article used the re-centered influence function (RIF) regression method to empirically test the impact of rural land circulation on the income gap of rural households in China in three regions: the central, eastern and western regions. The quantile regression tested the impact mechanism of income inequality of rural households from the perspective of labor mobility and land circulation. The empirical results showed that land circulation increases the income inequality of rural households. The theoretical mechanism test proved that the dynamic relationship between land circulation and labor mobility increases rural household income. However, this increase has a greater effect on rural households with a high income and a small effect on rural households with a low income, resulting in a further widening of the income gap. Therefore, while increasing the income of rural households through land circulation, the government should also consider income equity. Finally, this article puts forward the policies and opinions on land reform and provides a brief discussion on the future direction of development.


2016 ◽  
Vol 8 (3) ◽  
pp. 383-398 ◽  
Author(s):  
Shi Li ◽  
Tsun Se Cheong

Purpose The purpose of this paper is to study convergence and income mobility of China’s rural households. Design/methodology/approach The data of rural household income per capita are employed to compute the transitional dynamics in the rural sector. The analyses are conducted at two spatial levels, namely, the national and provincial levels. Ergodic distributions are computed to provide a forecast of future income distributions, whereas Mobility Probability Plots are constructed to offer detailed information on the transitional dynamics. Findings The income distributions are found to have considerable persistence. Another finding is that most of the households (except the extremely low-income households) have a tendency of moving downwards in the income distribution though they are more likely to remain in the same levels of relative income because of their high persistence. Convergence to a unimodal income distribution is possible in the long run, however, the households will converge to a value which is far below China’s per capita gross domestic product. Research limitations/implications Since a lot of the rural households would congregate to the lower part of the income distribution if the transitional dynamics remain unchanged, therefore, it calls for government intervention. Practical implications More resources should be diverted to the rural sector. Social implications The finding also shows that the provinces have very different transitional dynamics even if they are situated in the same economic zone. Thus, the government should formulate province-specific development polices so as to promote greater equality. Originality/value Given that no recent research has been conducted on convergence and transitional dynamics of rural household income. Therefore, this paper attempts to fill the gap in the literature by investigating the pattern and future development of rural household income in China through the use of stochastic kernel approach.


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.


2014 ◽  
Vol 2 (2) ◽  
pp. 25-39
Author(s):  
Afrizal Afrizal

Unemployment in developing countries such as Indonesia, the economic development of this country as a growing number of unemployment is a problem that is more complicated and more serious than the problem of changes in income distribution are less profitable low-income residents Unemployment in Jambi Province has reached tens of thousands of people is an urgent problem that must be solved because of the impact of unemployment it would be very dangerous to the social order of life. It is a fact that various social evils such as theft / muggings/robberies, prostitution, Jula buy children, street children and others merupakandampakdaripengangguran.


2016 ◽  
Vol 19 (2) ◽  
pp. 19-32
Author(s):  
Noyan Aydin ◽  
Taner Akmercan

Abstract The relationship between household income and expenditure is important for understanding how the shape of the economic dynamics of the households. In this study, the relationship between household consumption expenditure and household disposable income were analyzed by Locally Weighted Scatterplot Smoothing Regression which is a nonparametric method using R programming. This study aimed to determine relationship between variables directly, unlike making any assumptions are commonly used as in the conventional parametric regression. According to the findings, effect on expenditure with increasing of income and household size together increased rapidly at first, and then speed of increase decreased. This increase can be explained by having greater compulsory consumption expenditure relatively in small households. Besides, expenditure is relatively higher in middle and high income levels according to low income level. However, the change in expenditure is limited in middle and is the most limited in high income levels when household size changes.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shreya Kapoor ◽  
Sanjeev Kapoor

Purpose Doubling farming households’ income through occupational diversification to the non-farm sector has been advocated to be of paramount importance in an agrarian economy such as India. The purpose of this paper is to analyse the effects of non-farm activities on rural household incomes in four different Indian states by using a propensity score matching technique and developing an endogenous switching model. Design/methodology/approach The research is based on secondary data taken from four quinquennial rounds of employment and unemployment surveys conducted by the National Sample Survey Organization. Findings The matching results indicate a maximum monthly rise in per capita income of Rs. 60 in Gujarat and a minimum increase of Rs. 18 in Rajasthan among rural households employed in the non-farm sector as compared to the farm sector. The findings confirm that rural non-farm structural diversification cannot be viewed as a blueprint for increasing rural household incomes in different states. Further, it suggests the need to segmenting the different states on the basis of agricultural development for increasing rural incomes. Research limitations/implications The study argues that Indian states with a strongly developed farm sector i.e. Gujarat and Punjab are not ideally suited to undergo structural changes in their economic pursuit. The estimates suggest that the transition of rural households from farm to non-farm-sector activities is a very weak strategy in agriculturally developed states of Gujarat and Punjab, whereas non-farm diversification becomes a pivotal strategy for increasing rural household incomes in less agriculturally developed states such as Rajasthan and Uttar Pradesh. A contrasting point that arises from these evidence is that although diversification to the non-farm sector leads to higher income, but the resultant figures are very scanty. Originality/value The present study contributes to the existing literature by providing evidence and policy implications on rural non-farm diversification in India and its impact on the rural household income. The study can help the policymakers in framing policies aiming at increasing the income of the rural household through the structural transition of the rural economy.


Author(s):  
Önder Nomaler ◽  
Bart Verspagen ◽  
Adriaan van Zon

This chapter addresses the relationship between structural change and the income distribution. It raises the question of whether structural change increases or decreases income inequality. The chapter presents a multi-sectoral model in the so-called canonical modelling tradition. In this model the distributional outcomes depend on the mix of the labour supply in different technology classes and skill biases in technological change. Whether structural change has an effect depends on the specific country. When it does have an effect, it mainly benefits high-skilled labour. The skill premium for high-skilled labour thus contributes to increased income inequality. Both the relative supply of skills and skill-based technological change tend to increase income inequality, though not in all countries.


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