This paper investigates the importance of firm-to-firm production network linkages for earnings inequality. We develop a quantitative model in which heterogeneous firms hire workers of different abilities in an imperfectly competitive labor market and source intermediates from heterogeneous...

We develop a quantitative model in which heterogeneous firms hire heterogeneous workers in an imperfectly competitive labor market and source intermediates from suppliers in a production network. We use the model to investigate how the production network shapes three key labor market outcomes:...

The introduction of the household responsibility system in the early 1980s and market liberalizing reforms are generally credited with the rapid growth enjoyed by China's rural sector. This growth has not been without some cost however. Over the last two decades, inequality appears to have...

This paper provides an overview of the evolution of income inequality and poverty in China from 1987 to 2002, documenting significant increases of inequality within China's urban and rural populations. In rural areas, increased inequality is primarily related to the disequalizing role of...

This paper provides an overview of the evolution of income inequality and poverty in China from 1987 to 2002, documenting significant increases of inequality within China's urban and rural populations. In rural areas, increased inequality is primarily related to the disequalizing role of...