The Determinants of Educational Attainment in China

The evidence presented in this volume indicates that the distribution of income in China is less unequal than in many developing countries. The Gini coefficient in 1988 was 0.34 in rural areas and 0.23 in urban areas.2 This low degree of income inequality is partly attributable to the restrictions on the personal ownership of land and capital. Human capital, by contrast, is intrinsically attached to the person. It is possible, therefore, that education is an important determinant of such income inequality as exists in China.