Abstract
The paper provides estimates of Gini coefficients for each of the 31 Chinese provinces for the years 2000-2012. The estimates bring out the extremely high income inequality to be found in nearly half of the provinces in sharp contrast to the extremely low income inequality to be found in the other half. The country seems to be sharply divided into two extremes when it comes to considering the extent of income inequality within its provinces. Policy implications of the findings are considered.
Highlights
This paper makes an attempt at providing Gini coefficient estimates for each of the 31 Chinese provinces for the years 2000 to 2012
The estimates bring out the extremely high income inequality to be found in nearly half of the provinces in sharp contrast to the extremely low income inequality to be found in the other half
The country seems to be sharply divided into two extremes when it comes to considering the extent of income inequality within its provinces
Summary
This paper makes an attempt at providing Gini coefficient estimates for each of the 31 Chinese provinces for the years 2000 to 2012. Even for the designing of national macroeconomic policies, the policy makers may find it useful to factor in the degree of income inequality within each province in their decision making process For these and other reasons (including political and even ecological ones), computations of the Gini coefficients at the provincial level would appear to be of some importance. The resulting estimates of the Gini coefficients for the whole country are seen to be very close to those reported in Table 1 (see Figure 2). If we look at the estimates of the Gini coefficients for China as a whole reported, it can be seen that these too remained fairly constant during this period (suggesting no significant changes in the distribution of income during the period).
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