Measurement and Decomposition Analysis of Occupational Income Inequality in China

Using the China CFPS database, this paper measures the degree of intra-occupational inequality in China with the Pareto coefficient and uses the generalized entropy index to decompose the top income gap by region as well as by industry. The empirical results show that, firstly, the degree of income...

Full description

Saved in:
Bibliographic Details
Main Authors: Jing Yuan, Teng Ma, Yinghui Wang, Zongwu Cai
Format: Article
Language:English
Published: MDPI AG 2025-02-01
Series:Stats
Subjects:
Online Access:https://www.mdpi.com/2571-905X/8/1/13
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850279992611569664
author Jing Yuan
Teng Ma
Yinghui Wang
Zongwu Cai
author_facet Jing Yuan
Teng Ma
Yinghui Wang
Zongwu Cai
author_sort Jing Yuan
collection DOAJ
description Using the China CFPS database, this paper measures the degree of intra-occupational inequality in China with the Pareto coefficient and uses the generalized entropy index to decompose the top income gap by region as well as by industry. The empirical results show that, firstly, the degree of income inequality between occupations in China has increased significantly in recent years. The provinces with a higher degree of income inequality between occupations are mostly located in the more economically developed regions in the central and eastern parts of the country, while the degree of inequality between occupations in the western part is lower. Secondly, the highest-income occupations are mainly in the manufacturing industry, with relatively high levels in the construction industry, the education sector, the wholesale and retail trade, and public administration and social organizations, while the levels in other occupations are relatively low. Lastly, the top income gap primarily originates from within industries. However, the contribution rate of the top income gap between industries is gradually increasing, while the contribution rate of the top income gap within industries is gradually decreasing.
format Article
id doaj-art-2deae835c32149a7a6f63d327375d2ff
institution OA Journals
issn 2571-905X
language English
publishDate 2025-02-01
publisher MDPI AG
record_format Article
series Stats
spelling doaj-art-2deae835c32149a7a6f63d327375d2ff2025-08-20T01:48:54ZengMDPI AGStats2571-905X2025-02-01811310.3390/stats8010013Measurement and Decomposition Analysis of Occupational Income Inequality in ChinaJing Yuan0Teng Ma1Yinghui Wang2Zongwu Cai3Department of Statistics, Shandong Technology and Business University, Yantai 264005, ChinaPenglai Sub-Branch, Industrial and Commercial Bank of China Limited Company, Yantai 264005, ChinaDepartment of Statistics, Shandong Technology and Business University, Yantai 264005, ChinaDepartment of Economics, University of Kansas, Lawrence, KS 66045, USAUsing the China CFPS database, this paper measures the degree of intra-occupational inequality in China with the Pareto coefficient and uses the generalized entropy index to decompose the top income gap by region as well as by industry. The empirical results show that, firstly, the degree of income inequality between occupations in China has increased significantly in recent years. The provinces with a higher degree of income inequality between occupations are mostly located in the more economically developed regions in the central and eastern parts of the country, while the degree of inequality between occupations in the western part is lower. Secondly, the highest-income occupations are mainly in the manufacturing industry, with relatively high levels in the construction industry, the education sector, the wholesale and retail trade, and public administration and social organizations, while the levels in other occupations are relatively low. Lastly, the top income gap primarily originates from within industries. However, the contribution rate of the top income gap between industries is gradually increasing, while the contribution rate of the top income gap within industries is gradually decreasing.https://www.mdpi.com/2571-905X/8/1/13occupational income inequalityPareto coefficientgeneralized entropy index
spellingShingle Jing Yuan
Teng Ma
Yinghui Wang
Zongwu Cai
Measurement and Decomposition Analysis of Occupational Income Inequality in China
Stats
occupational income inequality
Pareto coefficient
generalized entropy index
title Measurement and Decomposition Analysis of Occupational Income Inequality in China
title_full Measurement and Decomposition Analysis of Occupational Income Inequality in China
title_fullStr Measurement and Decomposition Analysis of Occupational Income Inequality in China
title_full_unstemmed Measurement and Decomposition Analysis of Occupational Income Inequality in China
title_short Measurement and Decomposition Analysis of Occupational Income Inequality in China
title_sort measurement and decomposition analysis of occupational income inequality in china
topic occupational income inequality
Pareto coefficient
generalized entropy index
url https://www.mdpi.com/2571-905X/8/1/13
work_keys_str_mv AT jingyuan measurementanddecompositionanalysisofoccupationalincomeinequalityinchina
AT tengma measurementanddecompositionanalysisofoccupationalincomeinequalityinchina
AT yinghuiwang measurementanddecompositionanalysisofoccupationalincomeinequalityinchina
AT zongwucai measurementanddecompositionanalysisofoccupationalincomeinequalityinchina