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CPS1254 Yu Jin et al.
                      Where ( ) means the mean of   . Since it has been assumed that the
                                
                                                       
                  fitting results are entirely determined by objective "environmental" factors,
                  ( ) is a measure of opportunity inequality.
                     
                      Jiang Qiuchuan and Zhang Kezhong(2015) introduced the concept of
                  equitable distribution equivalence income proposed by Atkinson  (1970). Its
                                                                                  1
                  magnitude depends on the unequal degree and average income level of real
                  income distribution. Therefore, the introduction of this concept can  reflect
                  both  expected  income  and  income  fluctuation.  The  equal  distribution
                  equivalent income of   is:
                                        
                                                            1
                                   1              1−  1−
                                   ( ∑   =1  ∑ =1 ( )  )
                                                    
                                   
                           
                                                 ⁄
                             =        1              ≠ 1                                      (3)
                                         
                                             
                                  (∏ ∏  )                    = 1

                                             
                                 {  =1  =1

                      Among  them,   ≥ 0  is  the  unequal  aversion  coefficient  proposed  by
                  Atkinson (1970), thus a new nonparametric estimation is obtained:
                       
                       = { 1  1 , … ,    1 , … ,    1 }                                                (4)
                               1        
                      By  comparing  the  newly  established  counterfactual  distribution,  the
                  expected  income  and  income  risk  of  different  "environments"  are  fully
                  considered.  Therefore,  this  paper  uses  this  counterfactual  distribution  to
                  measure the degree of inequality of opportunity by no-parametric method.

                  3.  Results
                      The construction of counterfactual distribution is to measure the degree
                  of  inequality  of  opportunity.  When  we  measure  inequality  of  income  and
                  inequality  of  opportunity,  the  unequal  index  we  choose  is  Gini  coefficient.
                  However, in order to ensure the accuracy of the results, all calculations are
                  repeated  using  the  Theil  index.  It  is  found  that  inequality  of  opportunity
                  estimated  by  Theil  index  is  smaller,  but  the  overall  trends  and  differences
                  between the two indicators are basically the same. So the results calculated by
                  Gini coefficient will only be presented in the subsequent reports. At the same
                  time, this paper will analyze the absolute value ( ) and the relative value
                                                                     
                  ( )/()  of the opportunity inequality.
                     ^
                      Firstly, we analyze the general situation and the trend of change year by
                  year of inequality of opportunity in the income of our residents from 2003-
                  2013,  and  the  results  are  shown  in  Figure  3-1.  From  the  calculated  Gini
                  coefficient of residents' income in each year, we can see that the inequality of
                  residents' income in China has a rising trend in 2003-2013. In this paper, two
                  points need to be emphasized: first, the income data in this paper do not
                  adjust  inflation.  Considering  that  the  calculation  result  of  income  Gini


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