Did Higher Inequality Impede Growth in Rural China?

Benjamin, Dwayne; Brandt, Loren; Giles, John

dc.creator	Benjamin, Dwayne
dc.creator	Brandt, Loren
dc.creator	Giles, John
dc.date	2012-03-19T18:42:58Z
dc.date	2012-03-19T18:42:58Z
dc.date	2010-11-01
dc.date.accessioned	2023-02-17T21:06:45Z
dc.date.available	2023-02-17T21:06:45Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101119093018
dc.identifier	http://hdl.handle.net/10986/3964
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244934
dc.description	This paper estimates the relationship between initial village inequality and subsequent household income growth for a large sample of households in rural China. Using a rich longitudinal survey spanning the years 1987-2002, and controlling for an array of household and village characteristics, the paper finds that households located in higher inequality villages experienced significantly lower income growth through the 1990s. However, local inequality s predictive power and effects are significantly diminished by the end of the sample. The paper exploits several advantages of the household-level data to explore hypotheses that shed light on the channels by which inequality affects growth. Biases due to aggregation and heterogeneity of returns to own-resources, previously suggested as candidate explanations for the relationship, are both ruled out. Instead, the evidence points to unobserved village institutions at the time of economic reforms that were associated with household access to higher income activities as the source of the link between inequality and growth. The empirical analysis addresses a number of pertinent econometric issues including measurement error and attrition, but underscores others that are likely to be intractable for all investigations of the inequality-growth relationship.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5483
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTABILITY
dc.subject	ADVERSE EFFECTS
dc.subject	ADVERSE IMPACT
dc.subject	AGRICULTURAL SECTOR
dc.subject	ANNUAL GROWTH
dc.subject	ANNUAL GROWTH RATE
dc.subject	ASSET DISTRIBUTION
dc.subject	AVERAGE ANNUAL
dc.subject	AVERAGE GROWTH
dc.subject	AVERAGE INCOMES
dc.subject	BANK
dc.subject	BIAS
dc.subject	BIASES
dc.subject	CAPITAL ACCUMULATION
dc.subject	COLONIAL LAND
dc.subject	CONSUMER PRICE INDEX
dc.subject	CONSUMPTION
dc.subject	CONSUMPTION GROWTH
dc.subject	COOPERATIVES
dc.subject	CORRUPTION
dc.subject	CREDIT
dc.subject	CREDIT MARKET
dc.subject	CREDIT MARKET CONSTRAINTS
dc.subject	CREDIT MARKETS
dc.subject	CROSS-COUNTRY DATA
dc.subject	CROSS-COUNTRY INEQUALITY
dc.subject	DATA SET
dc.subject	DATA SETS
dc.subject	DEPENDENT VARIABLE
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DIFFERENTIAL PATHS
dc.subject	DISTRIBUTION OF LAND
dc.subject	DISTRIBUTIVE POLITICS
dc.subject	DYNAMIC PANEL
dc.subject	ECONOMETRIC ANALYSIS
dc.subject	ECONOMETRIC ISSUES
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC OPPORTUNITIES
dc.subject	ECONOMIC OPPORTUNITY
dc.subject	ECONOMIC PERFORMANCE
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIC REFORM
dc.subject	ECONOMIC REFORMS
dc.subject	ECONOMIC REVIEW
dc.subject	ECONOMIC SHOCKS
dc.subject	ECONOMIC STUDIES
dc.subject	EDUCATIONAL ATTAINMENT
dc.subject	EDUCATIONAL OPPORTUNITIES
dc.subject	EMPIRICAL ANALYSIS
dc.subject	EMPIRICAL PROBLEMS
dc.subject	EMPIRICAL RESULTS
dc.subject	EMPIRICAL WORK
dc.subject	EMPLOYMENT GUARANTEE SCHEME
dc.subject	EMPLOYMENT OPPORTUNITIES
dc.subject	EMPOWERMENT
dc.subject	ENDOWMENT
dc.subject	ENDOWMENTS
dc.subject	ENTERPRISES
dc.subject	EQUAL OPPORTUNITY
dc.subject	EXCLUSION
dc.subject	EXPENDITURE
dc.subject	EXPENDITURES
dc.subject	EXPLANATORY VARIABLES
dc.subject	FACTOR ENDOWMENTS
dc.subject	FAMILY
dc.subject	FAMILY BUSINESSES
dc.subject	FARM ACTIVITY
dc.subject	FARM EMPLOYMENT
dc.subject	FARM EMPLOYMENT OPPORTUNITIES
dc.subject	FARM OUTPUT
dc.subject	FEE
dc.subject	FEES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL SUPPORT
dc.subject	FOREIGN LANGUAGES
dc.subject	FORMAL SOURCES OF CREDITS
dc.subject	FUNCTIONAL FORM
dc.subject	GINI COEFFICIENT
dc.subject	GROUP MEANS
dc.subject	GROWTH EQUATION
dc.subject	GROWTH LITERATURE
dc.subject	GROWTH RATE
dc.subject	GROWTH RATES
dc.subject	GROWTH THEORIES
dc.subject	GROWTH-INEQUALITY RELATIONSHIP
dc.subject	GUARANTEE
dc.subject	GUARANTEE SCHEME
dc.subject	HETEROGENEOUS COMMUNITIES
dc.subject	HIGH INEQUALITY
dc.subject	HIGHER INEQUALITY
dc.subject	HOUSEHOLD
dc.subject	HOUSEHOLD ACCESS
dc.subject	HOUSEHOLD CONSUMPTION
dc.subject	HOUSEHOLD HEAD
dc.subject	HOUSEHOLD INCOME
dc.subject	HOUSEHOLD INCOMES
dc.subject	HOUSEHOLD MEMBERS
dc.subject	HOUSEHOLD PARTICIPATION
dc.subject	HOUSEHOLD PER CAPITA INCOME
dc.subject	HOUSEHOLD SIZE
dc.subject	HOUSEHOLD SURVEY
dc.subject	HOUSEHOLD SURVEYS
dc.subject	HOUSEHOLDS
dc.subject	HUMAN CAPITAL
dc.subject	HUMAN DEVELOPMENT
dc.subject	IMPACT OF INEQUALITY
dc.subject	IMPERFECT CREDIT
dc.subject	INCOME DISTRIBUTION
dc.subject	INCOME GROWTH
dc.subject	INCOME INEQUALITY
dc.subject	INCOME VARIABLES
dc.subject	INDICATORS
dc.subject	INEQUALITY
dc.subject	INEQUALITY INDEX
dc.subject	INEQUALITY MEASURE
dc.subject	INEQUALITY MEASURES
dc.subject	INEQUALITY-GROWTH RELATIONSHIP
dc.subject	INSTRUMENTS
dc.subject	INTEREST
dc.subject	INTERNATIONAL BANK
dc.subject	INVESTMENT
dc.subject	JOB OPPORTUNITIES
dc.subject	LABOR MARKETS
dc.subject	LABOUR MARKETS
dc.subject	LAND DISTRIBUTION
dc.subject	LAND REFORM
dc.subject	LINK BETWEEN INEQUALITY AND GROWTH
dc.subject	LOG INCOME
dc.subject	MACROECONOMIC IMPLICATIONS
dc.subject	MACROECONOMICS
dc.subject	MARKET CONSTRAINTS
dc.subject	MARKET DEVELOPMENT
dc.subject	MEAN INCOME
dc.subject	MEAN INCOMES
dc.subject	MEAN LOG DEVIATION
dc.subject	MEASUREMENT ERROR
dc.subject	MEASUREMENT PROBLEMS
dc.subject	MEASURES OF POVERTY
dc.subject	NEGATIVE EFFECT
dc.subject	NEGATIVE GROWTH
dc.subject	NEGATIVE RELATIONSHIP
dc.subject	NET INCOME
dc.subject	NEW MARKETS
dc.subject	0 HYPOTHESIS
dc.subject	OUTCOMES
dc.subject	PEOPLE
dc.subject	PER CAPITA INCOME
dc.subject	PER CAPITA INCOMES
dc.subject	PHYSICAL CAPITAL
dc.subject	POLICIES
dc.subject	POLICY RESEARCH
dc.subject	POLITICAL ECONOMY
dc.subject	POLITICAL ECONOMY MODELS
dc.subject	POLITICAL PARTICIPATION
dc.subject	POOR
dc.subject	POOR HOUSEHOLDS
dc.subject	POST-REFORM
dc.subject	POVERTY
dc.subject	POVERTY DYNAMICS
dc.subject	POVERTY REDUCTION
dc.subject	PRIMARY EDUCATION
dc.subject	PRODUCT
dc.subject	PRODUCTIVITY GROWTH
dc.subject	PROGRAMS
dc.subject	PROPERTY
dc.subject	PROPERTY RIGHTS
dc.subject	PUBLIC ECONOMICS
dc.subject	PUBLIC EDUCATION
dc.subject	PUBLIC EXPENDITURE
dc.subject	PUBLIC EXPENDITURES
dc.subject	PUBLIC FINANCE
dc.subject	PUBLIC GOODS
dc.subject	PUBLIC INVESTMENTS
dc.subject	PUBLIC POLICY
dc.subject	REGRESSION RESULTS
dc.subject	REVENUE
dc.subject	RISING INEQUALITY
dc.subject	RURAL
dc.subject	RURAL CONSUMER
dc.subject	RURAL ECONOMY
dc.subject	RURAL EMPLOYMENT
dc.subject	RURAL HOUSEHOLD
dc.subject	RURAL HOUSEHOLDS
dc.subject	RURAL INEQUALITY
dc.subject	RURAL PUBLIC
dc.subject	SAMPLING
dc.subject	SCHOOL FINANCE
dc.subject	SIGNIFICANT DIFFERENCES
dc.subject	SIGNIFICANT EFFECT
dc.subject	SIGNIFICANT NEGATIVE
dc.subject	SMALL BUSINESSES
dc.subject	SOURCES OF INCOME
dc.subject	SURVEY DESIGN
dc.subject	TARGETING
dc.subject	TAXATION
dc.subject	TRANSFERS
dc.subject	VILLAGE
dc.subject	VILLAGE LEADERS
dc.subject	VILLAGES
dc.subject	WAGES
dc.title	Did Higher Inequality Impede Growth in Rural China?
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	East Asia and Pacific
dc.coverage	East Asia and Pacific
dc.coverage	East Asia
dc.coverage	Asia
dc.coverage	China