Livelihood capitals on income inequality among rural households: evidence from China

Fan Yang,Weizhong Zeng,Yao Jiang

doi:10.1590/0103-8478cr20190461

Fan Yang, Weizhong Zeng + Show 1 more

Open Access

https://doi.org/10.1590/0103-8478cr20190461

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Abstract

ABSTRACT: We used the data of the China Labor-force Dynamics Survey 2014 to examine the effects of livelihood capitals which include natural, material, human, financial, and social capitals on total household income, per capita income, agricultural income, wage income, operational income, and property income inequality among rural households in China. Results showed that different kinds of livelihood capitals have different effects on different types of rural households’ income. Specifically; (1) although, the area of cultivated land reduces agricultural income inequality, it increases per capita income inequality. (2) Forest land area enlarges per capita income inequality and total household income inequality. (3) Tractor variable reduces inequality in agricultural income and total household income. (4) While reducing the property income inequality, education variable enlarges the wage income inequality, the per capita income inequality and the total household income inequality. (5) Book variable reduces property income inequality. (6) Loan variable increases inequality in agricultural incomes. (7) Party variable reduces the agricultural income inequality. (8) Although, the internet variable increases agricultural income inequality, and property income inequality, it reduces wage income inequality, operational income inequality, per capita income, and total household income inequality.

Highlights

In the past 40 years of reform and opening, China’s economy has maintained a long-term and high-speed growth (LIU et al, 2018)
Approximately 16% of families have the member of the Communist Party of China (CPC). 43.6% of households can use smart phones or computers to access the internet
We used the data of the China Labor-force Dynamics Survey 2014 to examine the effects of livelihood capitals which include natural, material, human, financial, and social capitals on total household income, per capita income, agricultural income, wage income, operational income, and property income inequality among rural households in China

Summary

Introduction

In the past 40 years of reform and opening, China’s economy has maintained a long-term and high-speed growth (LIU et al, 2018). Economic growth has promoted the growth of household income, and widened the household income inequality. Income inequality hinders sustainable economic development, induces class antagonism and conflicts, and is not conducive to social solidarity and stability (JAYADEV & REDDY, 2011; PASKOV & DEWIDE, 2012; ZHANG, 2015; LIU et al, 2018). An effective measure to solve the problem of income inequality is to provide help to the disadvantaged groups and promote their income growth. The Chinese government is currently implementing precise poverty alleviation in rural China, helping the poor to increase their income, getting rid of poverty and reducing income inequality. The study of income inequality among the rural households can provide the desired

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