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Ethnicity and Income in China: The Case of Ningxia

01 Sep 2012-Research Papers in Economics (Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University)-
TL;DR: In this paper, the authors examined the correlation between ethnicity and income and found that ethnicity and religion-related social capital plays a significant role among the Hui in rural areas where the level of interethnic social interactions is lower.
Abstract: Using a 2006 household survey from the Ningxia Hui autonomous region in China, this paper examines two aspects of the correlation between ethnicity and income: namely, differences in the returns to human capital and the effects of ethnicity- and religion-related social capital. The findings indicate ethnic disparity in the returns to human capital across rural and urban areas. In rural areas, the returns to human capital for the Hui workforce differ according to the place of economic activity (i.e. local employment or migration), whereas no ethnic disparity is found for the urban workforce. We also find that ethnicity- and religion-related social capital plays a significant role among the Hui in rural areas where the level of interethnic social interactions is lower. We use this to suggest that Muslim-oriented attitudes toward trust in social networks of rural Hui households positively and interactively affect income through ethnically open trust attitudes.

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Book ChapterDOI
TL;DR: The authors investigated the nature of the differential in poverty by ethnicity in rural China using data from the Chinese Household Income Project in 2002 and found that rural poverty would be higher among minorities if they had the same regional distribution of Han.
Abstract: In this paper I investigate the nature of the differential in poverty by ethnicity in rural China using data from the Chinese Household Income Project in 2002. For that, I compare observed poverty with that in a counterfactual distribution in which ethnic minorities are given a set of relevant village and household characteristics of the Han majority. Results show that rural poverty would be higher among minorities if they had the same regional distribution of Han. On the contrary, the ethnic poverty differential is reduced after equalizing other characteristics of minorities, such as them living in less developed and mountainous areas, their larger number of children, their low education, and their fewer skilled non-agriculture workers. Additionally, I show that poverty among minorities is not even higher because some of these adverse characteristics have a smaller negative impact on them than on Han. Finally, the ethnic per capita (log)income differential is shown to be higher for higher percentiles, with an increasing role of location as the main driver of these differentials.

13 citations

Dissertation
19 Aug 2013

7 citations


Cites background from "Ethnicity and Income in China: The ..."

  • ...…to the Han Chinese in income (Gustaffson and Wei 2000; Gustaffson and Li 2003; Gustaffson and Ding 2008, 2009; Hannum and Wang 2010; Sullivan 2011; Sato and Ding 2012), representation in political leadership (Zang 1998), occupation (Hannum and Xie 1998), education (Rong and Shi 2001; Hannum 2002;…...

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Journal ArticleDOI
TL;DR: In this article, the authors investigated the interfirm trust formation by ethnic minority firms in the Xinjiang Uygur Autonomous Region, China and found that there is a general ethnic bias against ethnic minority companies in receiving trade credit.

4 citations

Posted ContentDOI
TL;DR: In this article, the authors find statistical evidence that access to bank loans plays a significant role in improving enterprise productivity, but it has a significantly negative impact on profitability; the result continues to hold when taking into account the ethnicity effect.
Abstract: Using 2004-2007 firm-level micro data for enterprises in Xinjiang Uygur Autonomous Re gion of China, weinve stigatethere lativeimportanceof bank loans and tradecre dit in promoting enterprise performance. We find statistical evidence that access to bank loans plays a significant role in improving enterprise productivity, but it has a significantly negative impact on profitability; the result continues to hold when taking into account the ethnicity effect. Moreover, there is no evidence of an ethnicity gap for the effect of receiving bank loans on enterprise performance. We also cannot find strong evidence that trade credit influences productivity or profitability.

2 citations


Cites background from "Ethnicity and Income in China: The ..."

  • ...While the bulk of empirical studies have used household data (Gustafsson and Li, 2003; Sato and Ding, 2012; Li and Ding, 2013), very few have analyzed enterprisesʼ activities....

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References
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Posted Content
TL;DR: In this paper, private wage returns to schooling in South Africa in 1993 were twice as high for non-whites as for whites and substantially higher at advanced levels of schooling for both races.
Abstract: Private wage returns to schooling in South Africa in 1993 are twice as high for nonwhites as for whites and substantially higher at advanced levels of schooling for both races To explore how these returns might be expected to change as the proportion of Africans with secondary and higher education increases quantile regressions for the wage function are estimated for African males and white males If the residuals based on a standard wage function specification are interpreted as omitted ability and it is assumed that ability increases (decreases) returns to schooling then we expect quantile returns to increase (decrease) at higher quantiles This is not observed for Africans at the higher and secondary school level but is evident among whites at higher educational levels The opposite pattern of differential returns favoring the least able (ie lowest deciles) is reported for the lower tail of the educational distribution that is for Africans at the level of primary school and for whites at secondary school (authors)

158 citations

Journal ArticleDOI
TL;DR: In a speech at the Central Work Conference on Poverty Eradication on 23 September 1996 Premier Li Peng declared that the country could see an end to poverty in its rural areas by the end of the century as mentioned in this paper.
Abstract: Poverty alleviation is on China's political agenda and ambitions are high in a country experiencing rapid economic growth. In a speech at the Central Work Conference on Poverty Eradication on 23 September 1996 Premier Li Peng declared that the country could see an end to poverty in its rural areas by the end of the century. This would mean lifting the country's remaining 65 million poor out of poverty.

91 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated how ethnic minorities in rural China are faring compared with the ethnic majority and found that minority villages in northeast China have a somewhat better economic situation than the average majority village, but minority village in the southwest are clearly faring worse.

70 citations

MonographDOI
TL;DR: In this paper, the authors present a series of monetary and non-monetary indicators which show the living standards of the ethnic minorities are improving but still lag seriously behind those of the majority Kinh-Hoa.
Abstract: Although economic reform has brought remarkable progress in poverty reduction in Vietnam, the scale and depth of ethnic minority poverty in Vietnam presents one of the major challenges to achieving the targets for poverty reduction set out in the Socio-Economic Development Plan, as well as the millennium development goals. The authors first review a series of monetary and non-monetary indicators which show the living standards of the ethnic minorities are improving but still lag seriously behind those of the majority Kinh-Hoa. The minorities' lower living standards result from the complex interplay of overlapping disadvantages, which start in utero and continue until adult life. Next an analysis of the drivers of the ethnic gap, in terms of both differences in characteristics and differences in returns to those characteristics, is undertaken. Mean and quantile decompositions show that at least a half of the gap in per capita expenditure can be attributed to the lower returns to characteristics that the ethnic minorities receive. The reasons underlying such differences in returns are discussed, drawing on both quantitative analysis and the large number of qualitative studies on ethnic issues in Vietnam. Finally, some of the short and longer term policy measures which the authors believe could help to counter ethnic disadvantages in the nutrition, education, and employment sectors are discussed. The authors also emphasize the importance of promoting growth that is geographically broad and socially inclusive without which, the current disparities between the Kinh-Hoa and the ethnic minorities will continue to grow.

62 citations


"Ethnicity and Income in China: The ..." refers background in this paper

  • ...For example, Baulch et al. (2010) compared socioeconomic characteristics and differences in returns to the Kin majority and ethnic minorities in Vietnam and found that the returns to education tend to higher for the Kin than for ethnic minorities. Silva (2009), using data on full-time male workers in Sri Lanka, found that the returns to secondary education were generally higher for Sinhalese (ethnic majority) workers, although the returns to tertiary education were greater for Tamil (ethnic minority) workers in the upper part of the wage distribution. In South Africa, Veitch (2007) found that while the returns to education by race differed by employment status and that the returns for white and black men were very similar at all levels of education, the returns to tertiary education were significantly higher for blacks than whites in the self-employed sector....

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  • ...For example, Baulch et al. (2010) compared socioeconomic characteristics and differences in returns to the Kin majority and ethnic minorities in Vietnam and found that the returns to education tend to higher for the Kin than for ethnic minorities. Silva (2009), using data on full-time male workers in Sri Lanka, found that the returns to secondary education were generally higher for Sinhalese (ethnic majority) workers, although the returns to tertiary education were greater for Tamil (ethnic minority) workers in the upper part of the wage distribution. In South Africa, Veitch (2007) found that while the returns to education by race differed by employment status and that the returns for white and black men were very similar at all levels of education, the returns to tertiary education were significantly higher for blacks than whites in the self-employed sector. This literature suggests the need for more detailedinterethnicity analysis of the returns to education for urban–rural and sector comparisons. As for the US, Ashraf (1994) calculated education returns for white and black workers from 1967 to 1986 and found that for high school graduates returns were higher for whites, whereas the returns for blacks were higher among college graduates....

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  • ...For example, Baulch et al. (2010) compared socioeconomic characteristics and differences in returns to the Kin majority and ethnic minorities in Vietnam and found that the returns to education tend to higher for the Kin than for ethnic minorities....

    [...]

  • ...For example, Baulch et al. (2010) compared socioeconomic characteristics and differences in returns to the Kin majority and ethnic minorities in Vietnam and found that the returns to education tend to higher for the Kin than for ethnic minorities. Silva (2009), using data on full-time male workers in Sri Lanka, found that the returns to secondary education were generally higher for Sinhalese (ethnic majority) workers, although the returns to tertiary education were greater for Tamil (ethnic minority) workers in the upper part of the wage distribution....

    [...]