Income Disparity in China-A Case Stady based on Shenzhen Household Survey

点击翻译按钮获取中文摘要

This project studies the issue of income inequality in China with the case of Shenzhen, the most successful and developed city in China.The study is based on the first hand survey data, Shenzhen Household Survey 2005, conducted in March 2006 in Shenzhen city, China. It contains income related data of 1065 households and 3252 persons, reflecting the data of 2005.This study estimates income gap using a new data set of household survey conducted in Shenzhen in 2006. Our main findings are(1) The Gini coefficient gets to 0.56 and reaches the highest level in urban cities.(2) The Theil index shows that urban registration status (hukou)and regional preference policy are the largest policy factors enlarging income disparity between Shenzhen and non-Shenzhen household, urban household and migrant household.(3) Regression-based decomposition analysis of income inequality shows that educational differences of working age adults can explain 38% of total income inequality.The research concludes that income distribution in urban China is worsening and becoming a serious social and political problem. lb solve the problem, it is necessary to abolish the discrimination policies such as urban registration system, invest more in human capital and provide equal education to the poor especially the poor in rural area