2012 年 58 巻 3 号 p. 21-51
This paper presents a quantitative analysis of the determining factors contributing to income inequality among farm households based on data in Sichuan Province. A particular focus is given to inequality among regions in terms of work opportunities and labor productivity in township and village enterprises. A combination of both of these factors serves as an indicator for rural industrialization (township and village enterprises’ output/rural workforce). As the method of analysis, household-level income function was estimated, and using the results, the ratio of the contribution to the income inequality (Gini coefficient and squared coefficient) of each variable was estimated.
It became evident that income inequality among regions could explain about 20% of income inequality among farm households, and that the most significant factor for income inequality among regions is rural industrialization. The divide among regions in terms of labor productivity and job opportunities in township and village enterprises also has a great impact on income inequality among farm households.
It was also concluded that among the variables covered in the paper, rural industrialization makes the greatest contribution to income inequality among farm households. As for household attributions, the findings show that their contribution to physical capital such as agricultural fixed capital, cultivated acreage and a topographical dummy-variable is small. Disparities in educational standards, age and vocational training, which represent human capital, also contribute little.
As can be deduced from the above, rural industrialization is the crucial factor for inequality of income in farm communities in Sichuan Province, where there are many farm households that depend on migrant workers earning. Therefore, systems and policies for promoting the increase in investments in inland regions (cities, townships) with rural communities, which are relatively lagging in industrialization, may serve as effective tools for rectifying income inequality among farm households.
The Gini coefficient in rural Sichuan has stabilized in the last dozen years or so as the result of increased rate of wage earnings and deterioration in the level of wage earnings inequality(pseudo-Gini coefficient). The equality of wage earnings is thought to be caused by migrant worker earnings, and not wages received from local enterprises. This can be explained by the widening gap among rural industrialized regions after the mid-1990s.
As the number of businesses penetrating the inland regions has been increasing in recent years, constructions of industrial parks are underway in urban districts and their surrounding areas.From the above analysis results, income inequality among farm households will increase unless the workforce is shifted to industrially developed regions.