Income inequality in today’s China

Author
Publication Year
2014

Type

Journal Article
Abstract

We document a rapid increase in income inequality in China’s recent past, capitalizing on newly available survey data collected by several Chinese university survey organizations. By now, China’s income inequality not only surpasses that of the United States by a large margin but also ranks among the highest in the world, especially in comparison with countries with comparable or higher standards of living. We argue that China’s current high income inequality is significantly driven by structural factors attributable to the Chinese political system, the main structural determinants being the rural-urban divide and the regional variation in economic well-being.

Journal
Proceedings of the National Academy of Sciences of the United States of America
Volume
111
Issue
19
Pages
6928-2933
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