The Effect of Territories on Inequalities of Opportunities for Citizens in China over Their Lives

Abstract

Inequality has been intensively studied for its role in promoting balanced economic development in China. The territorial inequality of coastal-inland provinces and urban-rural areas has been considered a leading cause of opportunity inequality and unequal individual development in different regions. This research aims to investigate how and to what extent territorial inequality affects personal development. The research also aims to provide a new understanding of inequality by presenting it throughout different life stages, from pre-working age to retirement age. Also, the research aims to evaluate the changes in data in terms of policies implemented by the Chinese government. The research method includes a series of econometrics tools. The research has adopted Ordinary Least Square (OLS) regression to analyse selected data from the most up-to-date survey years, from 2000 to 2015. To reflect the opportunity inequality, the study uses the ratio of the Gini coefficient from regression and the Gini coefficient from the sample. The Theil index is used to measure regional disparity, and the Mean Logarithmic Deviation Index is used to measure income inequality. The study also examines the correlation between different dependent variables to approach a more accurate and representative conclusion. The study conducts the quantitative research successfully and concludes territorial inequality strongly correlates with the inequality of opportunity at education and income levels. Problems at the education level have become more significant yearly, and the disparity in income distribution remains high throughout the period. The extension test supports a weak correlation between education and income, pension and education. The study suggests that the government could allocate more resources and focus on reducing territorial inequality by promoting technological advancement, geographical mobility and a series of welfare policies.