Using a household sample survey for 2006, this article shows that the Hui population in the rural part of Ningxia Autonomous Region in China is disadvantaged compared to the Han majority as regards length of education and household per capita wealth. Yet, there is no gap in average disposable incomes between the two ethnic groups and poverty rates are very similar. This paradox is owing to members of Hui households earning more off-farm income than members of Han households. In particular, young Hui males living in poor villages have a remarkably high likelihood of migrating, thereby bringing back income to their households.
