Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China

Nonfarm activity plays an increasingly important role in rural household income. Based on data from the Living Standards Measurement Study in the provinces of Hebei and Liaoning, the authors study the distribution of nonfarm income in rural China. First, they assume nonfarm income as an exogenous tr...

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Main Authors:	Zhu, Nong, Luo, Xubei
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURAL EXTENSION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTORS AGRICULTURAL TECHNOLOGIES AGRICULTURAL TECHNOLOGY AGRICULTURAL WAGE AGRICULTURAL WAGE EMPLOYMENT ANALYTICAL METHODS ARABLE LAND AVERAGE INCOME COLLECTIVE LAND CREDIT MARKET DATA ENTRY DATA QUALITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DROUGHT ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC WELFARE EMPLOYMENT INCOME EQUAL DISTRIBUTION FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM OUTPUT FARM SECTOR FARM WORK FARMER FARMERS FOOD PROCESSING HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD WELFARE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME SCALE INCOME SHARE INCOME SOURCE INCOME SOURCES INCOME TRANSFER INCOMES INEQUALITY INEQUALITY REDUCTION INSURANCE INSURANCE MARKET INSURANCE MARKETS LABOR FORCE LABOR MARKET LABOR PRODUCTIVITY LIQUIDITY CONSTRAINTS LIVING STANDARDS LIVING STANDARDS MEASUREMENT NEGATIVE CORRELATION NEGATIVE SHOCKS NON-SAMPLING ERROR NONFARM INCOME NORMAL DISTRIBUTION OBSERVED VALUE OPPORTUNITY COST POLICY RESEARCH POOR POOR HOUSEHOLDS POSITIVE ROLE POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVE ACTIVITY RURAL AREAS RURAL ECONOMIC DEVELOPMENT RURAL EMPLOYMENT RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL INFRASTRUCTURE RURAL MIGRANTS RURAL POPULATION RURAL POVERTY RURAL RESIDENTS SAFETY NET SAMPLE SIZE SELECTION BIAS SELF-EMPLOYMENT SIGNIFICANT NEGATIVE SOCIAL SECURITY SURVEY DATA SUSTAINABLE DEVELOPMENT TRANSACTION COSTS UNEMPLOYMENT URBAN AREAS WAGE RATES
Online Access:	http://documents.worldbank.org/curated/en/2006/01/6525930/nonfarm-activity-rural-income-inequality-case-study-two-provinces-china http://hdl.handle.net/10986/8789

id	okr-10986-8789
recordtype	oai_dc
spelling	okr-10986-87892021-04-23T14:02:40Z Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China Zhu, Nong Luo, Xubei AGRICULTURAL EXTENSION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTORS AGRICULTURAL TECHNOLOGIES AGRICULTURAL TECHNOLOGY AGRICULTURAL WAGE AGRICULTURAL WAGE EMPLOYMENT ANALYTICAL METHODS ARABLE LAND AVERAGE INCOME COLLECTIVE LAND CREDIT MARKET DATA ENTRY DATA QUALITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DROUGHT ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC WELFARE EMPLOYMENT INCOME EQUAL DISTRIBUTION FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM OUTPUT FARM SECTOR FARM WORK FARMER FARMERS FOOD PROCESSING HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD WELFARE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME SCALE INCOME SHARE INCOME SOURCE INCOME SOURCES INCOME TRANSFER INCOMES INEQUALITY INEQUALITY REDUCTION INSURANCE INSURANCE MARKET INSURANCE MARKETS LABOR FORCE LABOR MARKET LABOR PRODUCTIVITY LIQUIDITY CONSTRAINTS LIVING STANDARDS LIVING STANDARDS MEASUREMENT NEGATIVE CORRELATION NEGATIVE SHOCKS NON-SAMPLING ERROR NONFARM INCOME NORMAL DISTRIBUTION OBSERVED VALUE OPPORTUNITY COST POLICY RESEARCH POOR POOR HOUSEHOLDS POSITIVE ROLE POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVE ACTIVITY RURAL AREAS RURAL ECONOMIC DEVELOPMENT RURAL EMPLOYMENT RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL INFRASTRUCTURE RURAL MIGRANTS RURAL POPULATION RURAL POVERTY RURAL RESIDENTS SAFETY NET SAMPLE SIZE SELECTION BIAS SELF-EMPLOYMENT SIGNIFICANT NEGATIVE SOCIAL SECURITY SURVEY DATA SUSTAINABLE DEVELOPMENT TRANSACTION COSTS UNEMPLOYMENT URBAN AREAS WAGE RATES Nonfarm activity plays an increasingly important role in rural household income. Based on data from the Living Standards Measurement Study in the provinces of Hebei and Liaoning, the authors study the distribution of nonfarm income in rural China. First, they assume nonfarm income as an exogenous transfer to total income to decompose the Gini index. Second, they assume nonfarm income as a potential substitute for farm income to take household choices into account and simulate household income. The results show that nonfarm activity reduces rural income inequality by raising the income of poor households to a larger extent than that of rich households. Improving rural infrastructure and implementing universal basic education are critical to build up the capacity of households (in particular, poor households) to participate in nonfarm activity. Strengthening the links between farm activity and nonfarm activity is essential to optimize the contribution of nonfarm activity to pro-poor rural economic development. 2012-06-22T15:52:23Z 2012-06-22T15:52:23Z 2006-01 http://documents.worldbank.org/curated/en/2006/01/6525930/nonfarm-activity-rural-income-inequality-case-study-two-provinces-china http://hdl.handle.net/10986/8789 English Policy Research Working Paper; No. 3811 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
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURAL EXTENSION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTORS AGRICULTURAL TECHNOLOGIES AGRICULTURAL TECHNOLOGY AGRICULTURAL WAGE AGRICULTURAL WAGE EMPLOYMENT ANALYTICAL METHODS ARABLE LAND AVERAGE INCOME COLLECTIVE LAND CREDIT MARKET DATA ENTRY DATA QUALITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DROUGHT ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC WELFARE EMPLOYMENT INCOME EQUAL DISTRIBUTION FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM OUTPUT FARM SECTOR FARM WORK FARMER FARMERS FOOD PROCESSING HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD WELFARE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME SCALE INCOME SHARE INCOME SOURCE INCOME SOURCES INCOME TRANSFER INCOMES INEQUALITY INEQUALITY REDUCTION INSURANCE INSURANCE MARKET INSURANCE MARKETS LABOR FORCE LABOR MARKET LABOR PRODUCTIVITY LIQUIDITY CONSTRAINTS LIVING STANDARDS LIVING STANDARDS MEASUREMENT NEGATIVE CORRELATION NEGATIVE SHOCKS NON-SAMPLING ERROR NONFARM INCOME NORMAL DISTRIBUTION OBSERVED VALUE OPPORTUNITY COST POLICY RESEARCH POOR POOR HOUSEHOLDS POSITIVE ROLE POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVE ACTIVITY RURAL AREAS RURAL ECONOMIC DEVELOPMENT RURAL EMPLOYMENT RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL INFRASTRUCTURE RURAL MIGRANTS RURAL POPULATION RURAL POVERTY RURAL RESIDENTS SAFETY NET SAMPLE SIZE SELECTION BIAS SELF-EMPLOYMENT SIGNIFICANT NEGATIVE SOCIAL SECURITY SURVEY DATA SUSTAINABLE DEVELOPMENT TRANSACTION COSTS UNEMPLOYMENT URBAN AREAS WAGE RATES
spellingShingle	AGRICULTURAL EXTENSION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTORS AGRICULTURAL TECHNOLOGIES AGRICULTURAL TECHNOLOGY AGRICULTURAL WAGE AGRICULTURAL WAGE EMPLOYMENT ANALYTICAL METHODS ARABLE LAND AVERAGE INCOME COLLECTIVE LAND CREDIT MARKET DATA ENTRY DATA QUALITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DROUGHT ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC WELFARE EMPLOYMENT INCOME EQUAL DISTRIBUTION FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM OUTPUT FARM SECTOR FARM WORK FARMER FARMERS FOOD PROCESSING HOUSEHOLD LEVEL HOUSEHOLD MEMBERS HOUSEHOLD WELFARE HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME SCALE INCOME SHARE INCOME SOURCE INCOME SOURCES INCOME TRANSFER INCOMES INEQUALITY INEQUALITY REDUCTION INSURANCE INSURANCE MARKET INSURANCE MARKETS LABOR FORCE LABOR MARKET LABOR PRODUCTIVITY LIQUIDITY CONSTRAINTS LIVING STANDARDS LIVING STANDARDS MEASUREMENT NEGATIVE CORRELATION NEGATIVE SHOCKS NON-SAMPLING ERROR NONFARM INCOME NORMAL DISTRIBUTION OBSERVED VALUE OPPORTUNITY COST POLICY RESEARCH POOR POOR HOUSEHOLDS POSITIVE ROLE POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVE ACTIVITY RURAL AREAS RURAL ECONOMIC DEVELOPMENT RURAL EMPLOYMENT RURAL HOUSEHOLD RURAL HOUSEHOLD INCOME RURAL HOUSEHOLDS RURAL INCOME RURAL INEQUALITY RURAL INFRASTRUCTURE RURAL MIGRANTS RURAL POPULATION RURAL POVERTY RURAL RESIDENTS SAFETY NET SAMPLE SIZE SELECTION BIAS SELF-EMPLOYMENT SIGNIFICANT NEGATIVE SOCIAL SECURITY SURVEY DATA SUSTAINABLE DEVELOPMENT TRANSACTION COSTS UNEMPLOYMENT URBAN AREAS WAGE RATES Zhu, Nong Luo, Xubei Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper; No. 3811
description	Nonfarm activity plays an increasingly important role in rural household income. Based on data from the Living Standards Measurement Study in the provinces of Hebei and Liaoning, the authors study the distribution of nonfarm income in rural China. First, they assume nonfarm income as an exogenous transfer to total income to decompose the Gini index. Second, they assume nonfarm income as a potential substitute for farm income to take household choices into account and simulate household income. The results show that nonfarm activity reduces rural income inequality by raising the income of poor households to a larger extent than that of rich households. Improving rural infrastructure and implementing universal basic education are critical to build up the capacity of households (in particular, poor households) to participate in nonfarm activity. Strengthening the links between farm activity and nonfarm activity is essential to optimize the contribution of nonfarm activity to pro-poor rural economic development.
format	Publications & Research :: Policy Research Working Paper
author	Zhu, Nong Luo, Xubei
author_facet	Zhu, Nong Luo, Xubei
author_sort	Zhu, Nong
title	Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China
title_short	Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China
title_full	Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China
title_fullStr	Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China
title_full_unstemmed	Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China
title_sort	nonfarm activity and rural income inequality : a case study of two provinces in china
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/01/6525930/nonfarm-activity-rural-income-inequality-case-study-two-provinces-china http://hdl.handle.net/10986/8789
_version_	1764405679247851520

Nonfarm Activity and Rural Income Inequality : A Case Study of Two Provinces in China

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