The Rural-Urban Divide Economic Disparities

This book describes and explains the remarkably large rural-urban divide in economic well-being that exists in China, tracing the root causes, present effects, and future implications for the increasingly marketized Chinese economy. It uses the rigorous analysis and empirical methodology of modern economics.

John Knight is Professor of Economics and Director of the Institute of Economics and Statistics at the University of Oxford, and Fellow of St Edmund Hall, Oxford.

List of Figures

x

List of Tables

xii

PART I INTRODUCTION

1

(24)

Setting the Stage

3

(22)

Rural--Urban Relationships in Economic Development

3

(4)

The Sources of Rural--Urban Division

7

(6)

Rural--Urban Definitions

13

(4)

The Scope and Methods of Analysis

17

(2)

The Plan of the Study

19

(6)

PART II RURAL--URBAN COMPARISONS OF INCOME

25

(94)

The Rural--Urban Income Divide: Macroeconomics

27

(33)

The Rural Sector

30

(13)

The Urban Sector

43

(9)

Relative Deprivation and Political Pressures

52

(3)

Conclusion

55

(5)

The Rural--Urban Income Divide: Microeconomics

60

(59)

The Rural--Urban Income Gap: Decomposition

61

(9)

The Rural--Urban Income Gap by Province

70

(5)

Inequality of Urban Income

75

(12)

Inequality of Rural Income

87

(19)

Rural and Urban Wages from Employment

106

(9)

Rural--Urban Income Inequality in Perspective

115

(4)

PART III RURAL--URBAN COMPARISONS OF WELFARE

119

(94)

Education

121

(36)

The Setting and the Hypotheses

121

(4)

The Rural--Urban Divide in Education

125

(7)

Urban Educational Attainment

132

(6)

Rural Educational Attainment

138

(6)

Current School Enrolment

144

(2)

Is Education Supply-or Demand-Constrained?

146

(7)

Conclusion

153

(4)

Health

157

(27)

The Institutional Divide

158

(1)

Health-Care Provision and Access

159

(4)

Health-Care Finances

163

(5)

Health Outcomes

168

(13)

Conclusion

181

(3)

Housing

184

(29)

The Institutional Divide

184

(3)

Urban Housing

187

(17)

Rural Housing

204

(5)

Conclusion

209

(4)

PART IV THE MOVEMENT OF FACTORS

213

(104)

Rural--Urban Transfer of Capital

215

(37)

The Theory of Price-Scissors and Intersectoral Resource Transfers

216

(8)

Price-Scissors in China

224

(11)

Measuring the Intersectoral Resource Transfer

235

(4)

Government Expenditure Priorities

239

(8)

Conclusion

247

(5)

Rural--Urban Migration of Labour: Macroeconomics

252

(25)

A Theoretical Framework

253

(3)

The Invisible Great Wall

256

(4)

Survey Evidence

260

(10)

How Many Rural--Urban Migrants?

270

(4)

Conclusion

274

(3)

Rural--Urban Migration of Labour: Microeconomics

277

(40)

The Surveys and the Data

277

(2)

The Determinants of Migration

279

(17)

Migration: Substitute or Complement?

296

(5)

The Process of Migration

301

(7)

The Consequences of Migration

308

(6)

Conclusion

314

(3)

PART V CONCLUSIONS

317

(30)

Precis, Policy, and Perspective

319

(28)

Precis of the Argument

319

(10)

Implications for Policy

329

(8)

The Chinese Experience in Perspective

337

(10)

Index of Subjects

347

(3)

Index of Names

350

(2)

Index of Provinces

352

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The Rural-Urban Divide Economic Disparities and Interactions in China

Summary

Author Biography

Table of Contents

Supplemental Materials