The Impact of Remittances on Rural Poverty and Inequality in China
Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact o...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/05/9478256/impact-remittances-rural-poverty-inequality-china http://hdl.handle.net/10986/6597 |
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okr-10986-6597 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO JOBS ACCESSIBILITY AGRICULTURAL ACTIVITIES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EMPLOYMENT AGRICULTURAL MODERNIZATION AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL TECHNOLOGIES AGRICULTURAL WAGE ALTERNATIVE EMPLOYMENT ASSET ACCUMULATION AVERAGE INCOME BANK LOAN BASIC EDUCATION BASIC NEEDS BRAIN DRAIN BULLETIN CAPITAL ACCUMULATION CHANGING INCOME DISTRIBUTION COLLECTIVE LAND COMMERCIAL FARMING COMPARATIVE ADVANTAGE COUNTERFACTUAL CREDIT MARKET CULTURAL CHANGE DECOMPOSABLE POVERTY MEASURES DECOMPOSITION ANALYSIS DEPENDANTS DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DIVERSIFICATION EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC STATUS EDUCATION LEVEL EMPIRICAL ANALYSIS EMPIRICAL FINDINGS EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLE ENDOWMENTS ENTRY BARRIERS EQUALIZING IMPACT EXPENDITURE EXPLAINING INEQUALITY FAMILIES FAMILY MEMBERS FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM INCOME FARM INCOME GROWTH FARM INCOMES FARM PRODUCTION FARM PRODUCTIVITY FARM SECTOR FARM SIZE FARMER FARMERS FINANCIAL CONSTRAINTS FOOD POLICY FOOD SECURITY GENDER GINI COEFFICIENT GRAIN PRODUCTION GROWTH RATE HIGHER EDUCATION LEVEL HISTORICAL PERSPECTIVE HOUSEHOLD ASSETS HOUSEHOLD INCOMES HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD PER CAPITA INCOME HOUSEHOLD POVERTY HOUSEHOLD SIZE HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN DEVELOPMENT INCIDENCE OF POVERTY INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME FLUCTUATIONS INCOME GAINS INCOME GAP INCOME INCREASE INCOME INEQUALITY INCOME LEVEL INCOME SHARE INCOME SOURCE INCREASE INCOME INEQUALITY INCREASING SHARE INDUSTRIALIZATION INEQUALITIES INEQUALITY INEQUALITY MEASURES INSURANCE INSURANCE MARKET INTERNAL MIGRATION INTERNATIONAL BANK INTERNATIONAL MIGRANT INTERNATIONAL MIGRATION JOB OPPORTUNITIES LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LAND MARKET LAND QUALITY LAND SHORTAGE LAND TENURE LEVELS OF INCOME INEQUALITY LIVING STANDARDS LOCAL DEVELOPMENT LOW INCOME MEDIAN INCOME MIGRANT MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MODERNIZATION NATURAL RESOURCES NEGATIVE SHOCKS NONFARM INCOME NORMAL DISTRIBUTION NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY OPTIONS POLICY REFORMS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY REVIEW POLITICAL ECONOMY POOR POOR AREAS POOR GROWTH POOR HOUSEHOLDS POOR RURAL AREAS POOR RURAL HOUSEHOLDS POPULATION RESEARCH POSITIVE EFFECT POVERTY DATA POVERTY HEADCOUNT POVERTY INCIDENCE POVERTY INDICES POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY REDUCTION POVERTY SEVERITY PRIVATE TRANSFERS PROFITABILITY PROGRESS PUBLIC FACILITIES RATE OF GROWTH REAL INCOME REGIONAL DIFFERENCES REGIONAL INEQUALITY REMITTANCE REMITTANCES REMITTANCES FROM MIGRANTS RURAL RURAL ACTIVITIES RURAL AREA RURAL AREAS RURAL ASSET RURAL DEVELOPMENT RURAL ECONOMY RURAL EMPLOYMENT RURAL FARM RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL LABOR RURAL MARKET RURAL POOR RURAL POOR HOUSEHOLDS RURAL POVERTY RURAL PRODUCTION RURAL SECTOR RURAL WORKERS SAVINGS SKILLED LABOR SMALL BUSINESSES SOURCE OF INCOME SOURCES OF INCOME SPATIAL MOBILITY SUSTAINABLE DEVELOPMENT TRANSPORTATION URBAN AREAS URBAN CENTERS URBAN INFRASTRUCTURE URBAN MIGRATION VICIOUS CYCLE VILLAGE VILLAGES |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO JOBS ACCESSIBILITY AGRICULTURAL ACTIVITIES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EMPLOYMENT AGRICULTURAL MODERNIZATION AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL TECHNOLOGIES AGRICULTURAL WAGE ALTERNATIVE EMPLOYMENT ASSET ACCUMULATION AVERAGE INCOME BANK LOAN BASIC EDUCATION BASIC NEEDS BRAIN DRAIN BULLETIN CAPITAL ACCUMULATION CHANGING INCOME DISTRIBUTION COLLECTIVE LAND COMMERCIAL FARMING COMPARATIVE ADVANTAGE COUNTERFACTUAL CREDIT MARKET CULTURAL CHANGE DECOMPOSABLE POVERTY MEASURES DECOMPOSITION ANALYSIS DEPENDANTS DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DIVERSIFICATION EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC STATUS EDUCATION LEVEL EMPIRICAL ANALYSIS EMPIRICAL FINDINGS EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLE ENDOWMENTS ENTRY BARRIERS EQUALIZING IMPACT EXPENDITURE EXPLAINING INEQUALITY FAMILIES FAMILY MEMBERS FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM INCOME FARM INCOME GROWTH FARM INCOMES FARM PRODUCTION FARM PRODUCTIVITY FARM SECTOR FARM SIZE FARMER FARMERS FINANCIAL CONSTRAINTS FOOD POLICY FOOD SECURITY GENDER GINI COEFFICIENT GRAIN PRODUCTION GROWTH RATE HIGHER EDUCATION LEVEL HISTORICAL PERSPECTIVE HOUSEHOLD ASSETS HOUSEHOLD INCOMES HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD PER CAPITA INCOME HOUSEHOLD POVERTY HOUSEHOLD SIZE HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN DEVELOPMENT INCIDENCE OF POVERTY INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME FLUCTUATIONS INCOME GAINS INCOME GAP INCOME INCREASE INCOME INEQUALITY INCOME LEVEL INCOME SHARE INCOME SOURCE INCREASE INCOME INEQUALITY INCREASING SHARE INDUSTRIALIZATION INEQUALITIES INEQUALITY INEQUALITY MEASURES INSURANCE INSURANCE MARKET INTERNAL MIGRATION INTERNATIONAL BANK INTERNATIONAL MIGRANT INTERNATIONAL MIGRATION JOB OPPORTUNITIES LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LAND MARKET LAND QUALITY LAND SHORTAGE LAND TENURE LEVELS OF INCOME INEQUALITY LIVING STANDARDS LOCAL DEVELOPMENT LOW INCOME MEDIAN INCOME MIGRANT MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MODERNIZATION NATURAL RESOURCES NEGATIVE SHOCKS NONFARM INCOME NORMAL DISTRIBUTION NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY OPTIONS POLICY REFORMS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY REVIEW POLITICAL ECONOMY POOR POOR AREAS POOR GROWTH POOR HOUSEHOLDS POOR RURAL AREAS POOR RURAL HOUSEHOLDS POPULATION RESEARCH POSITIVE EFFECT POVERTY DATA POVERTY HEADCOUNT POVERTY INCIDENCE POVERTY INDICES POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY REDUCTION POVERTY SEVERITY PRIVATE TRANSFERS PROFITABILITY PROGRESS PUBLIC FACILITIES RATE OF GROWTH REAL INCOME REGIONAL DIFFERENCES REGIONAL INEQUALITY REMITTANCE REMITTANCES REMITTANCES FROM MIGRANTS RURAL RURAL ACTIVITIES RURAL AREA RURAL AREAS RURAL ASSET RURAL DEVELOPMENT RURAL ECONOMY RURAL EMPLOYMENT RURAL FARM RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL LABOR RURAL MARKET RURAL POOR RURAL POOR HOUSEHOLDS RURAL POVERTY RURAL PRODUCTION RURAL SECTOR RURAL WORKERS SAVINGS SKILLED LABOR SMALL BUSINESSES SOURCE OF INCOME SOURCES OF INCOME SPATIAL MOBILITY SUSTAINABLE DEVELOPMENT TRANSPORTATION URBAN AREAS URBAN CENTERS URBAN INFRASTRUCTURE URBAN MIGRATION VICIOUS CYCLE VILLAGE VILLAGES Zhu, Nong Luo, Xubei The Impact of Remittances on Rural Poverty and Inequality in China |
| geographic_facet |
East Asia and Pacific China |
| relation |
Policy Research Working Paper; No. 4637 |
| description |
Large numbers of agricultural labor
moved from the countryside to cities after the economic
reforms in China. Migration and remittances play an
important role in transforming the structure of rural
household income. This paper examines the impact of
rural-to-urban migration on rural poverty and inequality in
the case of Hubei province using the data of a 2002
household survey. Since remittances are a potential
substitute for farm income, the paper presents
counterfactual scenarios of what rural income, poverty, and
inequality would have been in the absence of migration. The
results show that, by providing alternatives to households
with lower marginal labor productivity in agriculture,
migration leads to an increase in rural income. In contrast
to many studies that suggest the increasing share of
non-farm income in total income widens inequality, this
paper offers support for the hypothesis that migration tends
to have egalitarian effects on rural income for three
reasons: (i) migration is rational self-selection - farmers
with higher agricultural productivities choose to remain in
local agricultural production while those with higher
expected return in urban non-farm sectors migrate; (ii)
poorer households facing binding constraints of land
shortage are more likely to migrate; and (iii) the poorest
poor benefit disproportionately from remittances. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Zhu, Nong Luo, Xubei |
| author_facet |
Zhu, Nong Luo, Xubei |
| author_sort |
Zhu, Nong |
| title |
The Impact of Remittances on Rural Poverty and Inequality in China |
| title_short |
The Impact of Remittances on Rural Poverty and Inequality in China |
| title_full |
The Impact of Remittances on Rural Poverty and Inequality in China |
| title_fullStr |
The Impact of Remittances on Rural Poverty and Inequality in China |
| title_full_unstemmed |
The Impact of Remittances on Rural Poverty and Inequality in China |
| title_sort |
impact of remittances on rural poverty and inequality in china |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/05/9478256/impact-remittances-rural-poverty-inequality-china http://hdl.handle.net/10986/6597 |
| _version_ |
1764400843521523712 |
| spelling |
okr-10986-65972021-04-23T14:02:32Z The Impact of Remittances on Rural Poverty and Inequality in China Zhu, Nong Luo, Xubei ACCESS TO CREDIT ACCESS TO JOBS ACCESSIBILITY AGRICULTURAL ACTIVITIES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EMPLOYMENT AGRICULTURAL MODERNIZATION AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL TECHNOLOGIES AGRICULTURAL WAGE ALTERNATIVE EMPLOYMENT ASSET ACCUMULATION AVERAGE INCOME BANK LOAN BASIC EDUCATION BASIC NEEDS BRAIN DRAIN BULLETIN CAPITAL ACCUMULATION CHANGING INCOME DISTRIBUTION COLLECTIVE LAND COMMERCIAL FARMING COMPARATIVE ADVANTAGE COUNTERFACTUAL CREDIT MARKET CULTURAL CHANGE DECOMPOSABLE POVERTY MEASURES DECOMPOSITION ANALYSIS DEPENDANTS DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DIFFERENCES IN INCOME DIVERSIFICATION EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC STATUS EDUCATION LEVEL EMPIRICAL ANALYSIS EMPIRICAL FINDINGS EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLE ENDOWMENTS ENTRY BARRIERS EQUALIZING IMPACT EXPENDITURE EXPLAINING INEQUALITY FAMILIES FAMILY MEMBERS FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM INCOME FARM INCOME GROWTH FARM INCOMES FARM PRODUCTION FARM PRODUCTIVITY FARM SECTOR FARM SIZE FARMER FARMERS FINANCIAL CONSTRAINTS FOOD POLICY FOOD SECURITY GENDER GINI COEFFICIENT GRAIN PRODUCTION GROWTH RATE HIGHER EDUCATION LEVEL HISTORICAL PERSPECTIVE HOUSEHOLD ASSETS HOUSEHOLD INCOMES HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD PER CAPITA INCOME HOUSEHOLD POVERTY HOUSEHOLD SIZE HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN DEVELOPMENT INCIDENCE OF POVERTY INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME FLUCTUATIONS INCOME GAINS INCOME GAP INCOME INCREASE INCOME INEQUALITY INCOME LEVEL INCOME SHARE INCOME SOURCE INCREASE INCOME INEQUALITY INCREASING SHARE INDUSTRIALIZATION INEQUALITIES INEQUALITY INEQUALITY MEASURES INSURANCE INSURANCE MARKET INTERNAL MIGRATION INTERNATIONAL BANK INTERNATIONAL MIGRANT INTERNATIONAL MIGRATION JOB OPPORTUNITIES LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LAND MARKET LAND QUALITY LAND SHORTAGE LAND TENURE LEVELS OF INCOME INEQUALITY LIVING STANDARDS LOCAL DEVELOPMENT LOW INCOME MEDIAN INCOME MIGRANT MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MODERNIZATION NATURAL RESOURCES NEGATIVE SHOCKS NONFARM INCOME NORMAL DISTRIBUTION NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST PHYSICAL CAPITAL POLICY IMPLICATIONS POLICY OPTIONS POLICY REFORMS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY REVIEW POLITICAL ECONOMY POOR POOR AREAS POOR GROWTH POOR HOUSEHOLDS POOR RURAL AREAS POOR RURAL HOUSEHOLDS POPULATION RESEARCH POSITIVE EFFECT POVERTY DATA POVERTY HEADCOUNT POVERTY INCIDENCE POVERTY INDICES POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY REDUCTION POVERTY SEVERITY PRIVATE TRANSFERS PROFITABILITY PROGRESS PUBLIC FACILITIES RATE OF GROWTH REAL INCOME REGIONAL DIFFERENCES REGIONAL INEQUALITY REMITTANCE REMITTANCES REMITTANCES FROM MIGRANTS RURAL RURAL ACTIVITIES RURAL AREA RURAL AREAS RURAL ASSET RURAL DEVELOPMENT RURAL ECONOMY RURAL EMPLOYMENT RURAL FARM RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL LABOR RURAL MARKET RURAL POOR RURAL POOR HOUSEHOLDS RURAL POVERTY RURAL PRODUCTION RURAL SECTOR RURAL WORKERS SAVINGS SKILLED LABOR SMALL BUSINESSES SOURCE OF INCOME SOURCES OF INCOME SPATIAL MOBILITY SUSTAINABLE DEVELOPMENT TRANSPORTATION URBAN AREAS URBAN CENTERS URBAN INFRASTRUCTURE URBAN MIGRATION VICIOUS CYCLE VILLAGE VILLAGES Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This paper examines the impact of rural-to-urban migration on rural poverty and inequality in the case of Hubei province using the data of a 2002 household survey. Since remittances are a potential substitute for farm income, the paper presents counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. The results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest the increasing share of non-farm income in total income widens inequality, this paper offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (i) migration is rational self-selection - farmers with higher agricultural productivities choose to remain in local agricultural production while those with higher expected return in urban non-farm sectors migrate; (ii) poorer households facing binding constraints of land shortage are more likely to migrate; and (iii) the poorest poor benefit disproportionately from remittances. 2012-05-29T19:22:10Z 2012-05-29T19:22:10Z 2008-05 http://documents.worldbank.org/curated/en/2008/05/9478256/impact-remittances-rural-poverty-inequality-china http://hdl.handle.net/10986/6597 English Policy Research Working Paper; No. 4637 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China |