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Identifier to cite or link to this item: https://hdl.handle.net/10086/16461

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Title
The Contribution of Social Networks to Income Inequality in Rural China: A Regression-Based Decomposition and Cross-Regional Comparison
Creator
Creator Name
Lu, Ming Lu, Ming
Affiliation
Affiliation Name
Fudan University
Creator Name
Zhao, Jianzhi Zhao, Jianzhi
Affiliation
Affiliation Name
Fudan University
Editor
Contributor Name
社会科学の高度統計・実証分析拠点構築 = Research Unit for Statistical and Empirical Analysis in Social Sciences
Key Word
Social Network
Income Inequality
Marketization
Regression-Based Decomposition
JEL
O15
Z13
P36
Abstract
This study aims to quantify the contribution of social networks, i.e., guanxi, to income inequality in rural households in China. One purpose is to understand how this influence varies across regions with different levels of marketization and economic development. Employing household survey data in rural China, we find that social networks contribute 12.1%-13.4% to income inequality among households in rural China, ranking fourth after village identifiers, nonfarm employment, and education. We also find that social networks exert a greater impact on income and a greater contribution to income inequality in Eastern China, compared with Middle-Western China where economic development is relatively slower. Our findings challenge the conventional understanding that social capital is the capital of the poor. In other words, the rich get richer in richer regions through social networks.
Publisher
Institute of Economic Research, Hitotsubashi University
Issued Date
2009-01
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Global COE Hi-Stat Discussion Paper Series ; No. 19
Relation
Related Identifier
URI
  http://gcoe.ier.hit-u.ac.jp/english/index.html
Number of Pages
38
Sponsorship
グローバルCOEプログラム = Global COE Program
Appears in Collections
Global COE Hi-Stat Discussion Paper Series
URL
https://hdl.handle.net/10086/16461