Community poverty and inequality in western China: A tale of three villages in Guizhou Province

Using a census survey of households in Guizhou Province, this paper examines the patterns of village poverty and inequality and their major correlates. The results show that poverty incidences vary greatly among villages and inequality is relatively high within villages in these impoverished areas. Although agriculture is still the major source of livelihood in this inland western region, income from local nonfarm jobs and remittance is more unevenly distributed and accounts for the largest share of overall income inequality. Surprisingly, blood donation is another major source of cash income. On the expenditure side, health care was found to be one of the most important sources of inequality. The paper also found that the distribution of assets, particularly land holdings, contributes to overall income inequality.