Chinese Gini Coefficient from 2005 to 2012, Based on 20 Grouped Income Data Sets of Urban and Rural Residents

Journal of Applied Mathematics Volume 2015 (2015), Article ID 939020

17 Pages Posted: 16 Mar 2015

See all articles by Jiandong Chen

Jiandong Chen

Southwestern University of Finance and Economics

Fuqian Fang

School of Economics, Renmin University of China

Wenxuan Hou

University of Edinburgh - Business School

Fengying Li

Southwestern University of Finance and Economics (SWUFE)

Ming Pu

Southwestern University of Finance and Economics (SWUFE) - Research Institute of Economics & Management

Malin Song

Anhui University of Finance and Economics

Date Written: March 15, 2015

Abstract

Data insufficiency has become the primary factor affecting research on income disparity in China. To resolve this issue, this paper explores Chinese income distribution and income inequality using distribution functions. First, it examines 20 sets of grouped data on family income between 2005 and 2012 by the China Yearbook of Household Surveys, 2013, and compares the fitting effects of eight distribution functions. The results show that the generalized beta distribution of the second kind has a high fitting to the income distribution of urban and rural residents in China. Next, these results are used to calculate the Chinese Gini ratio, which is then compared with the findings of relevant studies. Finally, this paper discusses the influence of urbanization on income inequality in China and suggests that accelerating urbanization can play an important role in narrowing the income gap of Chinese residents.

Keywords: China; Inequality; Gini Coefficient

JEL Classification: I3; D63

Suggested Citation

Chen, Jiandong and Fang, Fuqian and Hou, Wenxuan and Li, Fengying and Pu, Ming and Song, Malin, Chinese Gini Coefficient from 2005 to 2012, Based on 20 Grouped Income Data Sets of Urban and Rural Residents (March 15, 2015). Journal of Applied Mathematics Volume 2015 (2015), Article ID 939020, Available at SSRN: https://ssrn.com/abstract=2578530

Jiandong Chen

Southwestern University of Finance and Economics ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

HOME PAGE: http://cjd.weebly.com

Fuqian Fang

School of Economics, Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

HOME PAGE: http://seenglish.ruc.edu.cn/en/101416/101483/24056.html

Wenxuan Hou (Contact Author)

University of Edinburgh - Business School ( email )

29 Buccleuch Place
EDINBURGH, Scotland EH89JS
United Kingdom

Fengying Li

Southwestern University of Finance and Economics (SWUFE) ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

Ming Pu

Southwestern University of Finance and Economics (SWUFE) - Research Institute of Economics & Management ( email )

55 Guanghuacun Street
Chengdu, Sichuan 610074
China

Malin Song

Anhui University of Finance and Economics ( email )

Cao Shan Road No.962
Bengbu, Anhui 233030
China

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