Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China

Abstract In 2000, the Chinese government initiated a campaign to develop Western China and reduce local and regional inequality. Privatisation has been a central component of the campaign. This article studies the relationship between privatisation and income inequality in Western China, based on su...

Full description

Bibliographic Details
Main Author: Nan Zou Bakkeli
Format: Article
Language:English
Published: SpringerOpen 2017-05-01
Series:The Journal of Chinese Sociology
Subjects:
Online Access:http://link.springer.com/article/10.1186/s40711-017-0055-4
_version_ 1818756768732282880
author Nan Zou Bakkeli
author_facet Nan Zou Bakkeli
author_sort Nan Zou Bakkeli
collection DOAJ
description Abstract In 2000, the Chinese government initiated a campaign to develop Western China and reduce local and regional inequality. Privatisation has been a central component of the campaign. This article studies the relationship between privatisation and income inequality in Western China, based on survey data from 11 Western provinces collected between 2004 and 2005. This study first explores the link between privatisation and income inequality at the prefecture level, investigating whether a higher degree of privatisation can be linked to increased income inequality. Using multilevel random coefficient modelling, it then studies whether the impact of an individual’s socioeconomic position on their income varies across regions with different degrees of privatisation. The final part presents simulations of economic inequality based on the random slope model. The study shows that income inequality is higher in regions with higher degrees of privatisation, and larger privatisation correlates with lower individual income. Furthermore, the study confirms that individual income is strongly affected by education, occupation, employment sector and household registration status. Income differences based on these factors do not vary with the level of privatisation; however, a finding that contradicts market transition theory in the context of Western China.
first_indexed 2024-12-18T06:00:18Z
format Article
id doaj.art-905a302cc98d4621a2108e07a52d1717
institution Directory Open Access Journal
issn 2198-2635
language English
last_indexed 2024-12-18T06:00:18Z
publishDate 2017-05-01
publisher SpringerOpen
record_format Article
series The Journal of Chinese Sociology
spelling doaj.art-905a302cc98d4621a2108e07a52d17172022-12-21T21:18:42ZengSpringerOpenThe Journal of Chinese Sociology2198-26352017-05-014112010.1186/s40711-017-0055-4Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western ChinaNan Zou Bakkeli0Department of Sociology and Human Geography, University of OsloAbstract In 2000, the Chinese government initiated a campaign to develop Western China and reduce local and regional inequality. Privatisation has been a central component of the campaign. This article studies the relationship between privatisation and income inequality in Western China, based on survey data from 11 Western provinces collected between 2004 and 2005. This study first explores the link between privatisation and income inequality at the prefecture level, investigating whether a higher degree of privatisation can be linked to increased income inequality. Using multilevel random coefficient modelling, it then studies whether the impact of an individual’s socioeconomic position on their income varies across regions with different degrees of privatisation. The final part presents simulations of economic inequality based on the random slope model. The study shows that income inequality is higher in regions with higher degrees of privatisation, and larger privatisation correlates with lower individual income. Furthermore, the study confirms that individual income is strongly affected by education, occupation, employment sector and household registration status. Income differences based on these factors do not vary with the level of privatisation; however, a finding that contradicts market transition theory in the context of Western China.http://link.springer.com/article/10.1186/s40711-017-0055-4Income inequalityPrivatisationMarket transition
spellingShingle Nan Zou Bakkeli
Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China
The Journal of Chinese Sociology
Income inequality
Privatisation
Market transition
title Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China
title_full Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China
title_fullStr Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China
title_full_unstemmed Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China
title_short Income inequality and privatisation: a multilevel analysis comparing prefectural size of private sectors in Western China
title_sort income inequality and privatisation a multilevel analysis comparing prefectural size of private sectors in western china
topic Income inequality
Privatisation
Market transition
url http://link.springer.com/article/10.1186/s40711-017-0055-4
work_keys_str_mv AT nanzoubakkeli incomeinequalityandprivatisationamultilevelanalysiscomparingprefecturalsizeofprivatesectorsinwesternchina