2007Kexuexue yanjiuOpen access

Research on income inequality in China——an analysis by Lorenz curve

Tan Wei

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Abstract

The paper constructs a simple example to show that the Gini coefficient ignores the information of income structure when it is used to compare the income inequality.And when Lorenz curve cross,the judgment will be ambiguity.So analysis by Lorenz curve may be more correct.The paper summarizes the theory of analysis by Lorenz curve.In cording to Chinese data from 1988 to 1999,the paper draws the Lorenz curves and does empirical analysis of Chinese income inequality.At last the paper offers some policy suggestions.

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What this paper is about

The paper constructs a simple example to show that the Gini coefficient ignores the information of income structure when it is used to compare the income inequality.And when Lorenz curve cross,the judgment will be ambiguity.So analysis by Lorenz curve may be more correct.The paper summarizes the theory of analysis by Lorenz curve.In cording to Chinese data from 1988 to 1999,the paper draws the Lorenz curves and does empirical analysis of Chinese income inequality.At last the paper offers some policy suggestions.

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Available abstract

The paper constructs a simple example to show that the Gini coefficient ignores the information of income structure when it is used to compare the income inequality.And when Lorenz curve cross,the judgment will be ambiguity.So analysis by Lorenz curve may be more correct.The paper summarizes the theory of analysis by Lorenz curve.In cording to Chinese data from 1988 to 1999,the paper draws the Lorenz curves and does empirical analysis of Chinese income inequality.At last the paper offers some policy suggestions.

Key concepts: Lorenz curve, Gini coefficient, Economic inequality, Inequality, Econometrics, Ambiguity, Income distribution, Economics

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