Measuring China's income disparity using Theil-L index.

This paper proposes an aggregate measure of income inequality for China, using data from household samples covering 29 provinces and over a period of 13 years, from 1993 to 2005. Applying the methodology of Theil-L index, the paper aggregates the income inequality at national level and decomposes it...

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Bibliographic Details
Main Authors: Su, Juanna Jielin., Weng, Daphne Yinglin., Yong, Shiyun.
Other Authors: Chen, Kang
Format: Final Year Project
Published: 2008
Subjects:
Online Access:http://hdl.handle.net/10356/2169
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Institution: Nanyang Technological University
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Summary:This paper proposes an aggregate measure of income inequality for China, using data from household samples covering 29 provinces and over a period of 13 years, from 1993 to 2005. Applying the methodology of Theil-L index, the paper aggregates the income inequality at national level and decomposes it into inter-provincial and intra-provincial (rural-urban) level. Results have shown that intra-provincial income inequality contributed a major proportion to the overall inequality as compared to inter-provincial income inequality in China.