CEU eTD Collection (2019); Haishan, Yang: Inequality of Opportunity in China

CEU Electronic Theses and Dissertations, 2019
Author Haishan, Yang
Title Inequality of Opportunity in China
Summary What is the degree of inequality in China? What is the major course of this huge inequality? In this paper, by answering this question, I firstly show the Gini index of income and education over the years. To do so, I divide entire sample into 11 age groups and generate the Gini index separately. The results suggest that Gini index of education decreases dramatically from 0.506 for people born between 1940 and 1944 to 0.172 from people born between 1990 and 1994. Meanwhile, income inequality implies an alarming sign, increasing dramatically. By stratifying 31 Chinese provinces into three regions East, Central and West, I find education inequality is severe in central part of China due to limited educational resources, while income inequality is more obvious in the coastal and industrialized Eastern part of China because of occupational differentiations. Then, I construct a sample scalar measure of inequality of opportunity which captures between-group inequality where groups are defined entirely by some factors that beyond individual controls such as Hukou system of household registration, gender and family background. I find that the Hukou system plays a leading role in limiting both the earning potential and education achievement for rural people.
Supervisor István Kónya
Department Economics MA
Full texthttps://www.etd.ceu.edu/2019/haishan_yang.pdf

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