China’s economic development in recent decades has been tremendous, but subject to debate. This paper calculates regional prices that make incomes comparable across both time and space using the Engel-curve approach. Incomes are adjusted using these price indices, providing new estimates of inequality and poverty development. Our findings contrast with measures based on the official consumer price indices (CPIs) – in a time characterized by high economic growth, we find a larger increase in inequality and a more moderate poverty reduction than what is indicated by the CPI-adjusted measures.
The Cost of Living in China: Implications for Inequality and Poverty
Ingvild Almås and Åshild Auglænd Johnsen
Memo 06/2013
Published June 23, 2014 10:45 AM
- Last modified Mar. 28, 2024 4:03 AM