Rural-Urban Economic Disparities among China’s Elderly

Figure 1

Rural Household Income

Yearly income (yuan)

Figure 2

Urban Household Income

Mothly income (yuan)

Gini coefficients were computed for a more accurate picture of income inequality
in the rural and urban areas and the respective values found to be significantly different -
0.5046 and 0.3486⁹. The Gini coefficient can be expressed as a ratio of two regions defined
by a 45-degree line (line of perfect equality) and a Lorenz curve. The Lorenz curves for
both sectors are shown in Figure 3. Let A denote the area between the 45-degree line and
the Lorenz curve and A+B be the whole area below the 45-degree line or ½ of the unit box.

⁹ Urban inequality would certainly be higher if the “floating population” (migrant workers) would have been
included.

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