Income inequality among minority farmers in China: Does social capital have a role?

Abstract

We used recently available household panel data collected by China's National Bureau of Statistics to examine the effects of natural, human, material, and social capital on income inequality among minority farmers in China's Xinjiang Province between 2011 and 2012. Results obtained from panel quantile regression and correlated random effects’ models show that income inequality and the poverty of ethnic farmers have been decreasing to some extent. Results also indicated that human capital exacerbates income inequality among the minorities, whereas the effect of natural capital on income inequality is not evident. Social and material capital reduce income inequality among ethnic minorities. Results from the decomposition of the Gini coefficient indicate that material and social capital contribute to a substantial majority of the income inequality in the region.

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

“…Ideally, income or earning equations are estimated by structural models. When estimating structural models can't be realized, a standard Mincian model is a good alternative selection (LIU et al, 2018). We used log of different kinds of household income as dependent variables, as income was better approximated by log normal functional form (WAN & ZHOU, 2005;LIU et al, 2018):…”

“…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, but also widened the household income inequality.…”

“…html), exceeding the international warning line of 0.4. 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 study of GAO and YAO (2006), showed that the human capital of farmers can increase income inequality while the material capital has no statistically significant effect on income inequality. The study of LIU et al, (2018) found that social capital plays an important role among minority farmers in China. However, LIU et al, (2018) also reported that the impact of natural and human capital on income inequality is not evident.…”

“…The study of LIU et al, (2018) found that social capital plays an important role among minority farmers in China. However, LIU et al, (2018) also reported that the impact of natural and human capital on income inequality is not evident.…”