ÐÏà¡±á>þÿ 02þÿÿÿ/ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿì¥Á%` ð¿—bjbjNàNà 4,Š,Š— ÿÿÿÿÿÿ¤¤¤¤¤¤¤¤¸¼¼¼¼È¸s¶ààààà»»»òôôôôôô$) h‘p¤¦ »»¦ ¦ ¤¤ààÛ-²²²¦ ¤à¤àò²¦ ò²²¤¤²àÔÈg£ÒÉ¼° ²òC0s²º 4²¤²@»®i|²ådI ]»»»î Ä»»»s¦ ¦ ¦ ¦ ¸¸¸¼¸¸¸¼¸¸¸¤¤¤¤¤¤ÿÿÿÿABSTRACT: Analysis of Income Inequality and Disability in China Samuel L. Myers, Jr. Roy Wilkins Professor of Human Relations and Social Justice Hubert H. Humphrey Institute of Public Affairs University of Minnesota (Fulbright Scholar, Chinese Academy of Social Sciences, 2008-2009) and Ding Sai Research Economist Institute for Ethnology and Anthropology Department of Social and Economic Development Chinese Academy of Social Sciences There are wide differences in per capita household income between Han (majority group members) and ethnic minority group members in China. Conventional wisdom suggests that much if not all of the disparity can be explained by rural vs urban residence. The vast majority of ethnic minority group members in China, who account for less than 11 percent of the overall population, can be found in rural, less developed areas of the country. A significant impediment to full participation in income earning activities particularly in the rural sector is poor health and specific forms of disability. An illustration is the problem of hearing impaired and deaf children who are unable to complete school beyond the primary grades because of the lack of access to facilities that would permit them to integrate into the classrooms. Because of the nature of the Chinese language that relies heavily on tones (making lip reading nearly impossible) and the fact that Chinese sign language is not widely understood outside of urban areas, only students attending specialized schools in large urban areas are likely to receive secondary education. From the econometric point of view, this suggests a confounding influence of rural-urban residence on the marginal impacts of disability on income, controlling for other human capital factors. This paper uses the 2002 Chinese Household Income Project Survey (CHIPS) data to estimate log-linear regressions predicting per-capita household income as a function of disability and health status, rural-urban residence, educational completion, middle school achievement, gender, marital status, communist party membership and minority status. We estimate the model using a merged data set that includes observations from all provinces as well as separately for the urban and rural surveys. We use a Blinder-Oaxaca decomposition technique to isolate the independent influence of disability on income inequality between minorities and non-minorities and we test the hypothesis that the disability disparity is “explained” by rural urban differences in location. 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