Livelihood capitals on income inequality among rural households: evidence from China

ABSTRACT: We used the data of the China Labor-force Dynamics Survey 2014 to examine the effects of livelihood capitals which include natural, material, human, financial, and social capitals on total household income, per capita income, agricultural income, wage income, operational income, and property income inequality among rural households in China. Results showed that different kinds of livelihood capitals have different effects on different types of rural households’ income. Specifically; (1) although, the area of cultivated land reduces agricultural income inequality, it increases per capita income inequality. (2) Forest land area enlarges per capita income inequality and total household income inequality. (3) Tractor variable reduces inequality in agricultural income and total household income. (4) While reducing the property income inequality, education variable enlarges the wage income inequality, the per capita income inequality and the total household income inequality. (5) Book variable reduces property income inequality. (6) Loan variable increases inequality in agricultural incomes. (7) Party variable reduces the agricultural income inequality. (8) Although, the internet variable increases agricultural income inequality, and property income inequality, it reduces wage income inequality, operational income inequality, per capita income, and total household income inequality.