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Inequality and Growth in Modern China$
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Guanghua Wan

Print publication date: 2008

Print ISBN-13: 9780199535194

Published to Oxford Scholarship Online: May 2008

DOI: 10.1093/acprof:oso/9780199535194.001.0001

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Poverty Accounting by Factor Components: With an Empirical Illustration Using Rural Chinese Data *

Poverty Accounting by Factor Components: With an Empirical Illustration Using Rural Chinese Data *

Chapter:
(p.184) 10 Poverty Accounting by Factor Components: With an Empirical Illustration Using Rural Chinese Data*
Source:
Inequality and Growth in Modern China
Author(s):

Guanghua Wan (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199535194.003.0010

This chapter develops two poverty decomposition frameworks and illustrates their applicability. A given level of poverty is broadly decomposed into an overall inequality component and an overall endowment component in terms of income or consumption determinants or input factors. These components are further decomposed into finer components associated with individual inputs. Also, a change in poverty is decomposed into components attributable to the growth and redistributions of factor inputs. An empirical illustration using Chinese data highlights the importance of factor redistributions in determining poverty levels and poverty changes in rural China.

Keywords:   poverty decomposition, inequality, Shapley value, China

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