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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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Chinese residents’ rising income growth and distribution inequality

Chinese residents’ rising income growth and distribution inequality

(p.42) 3 Chinese residents’ rising income growth and distribution inequality
The Oxford Companion to the Economics of China

Chen Zongsheng

Oxford University Press

This chapter examines income distribution in China. It identifies factors that threaten to impede economic development as well as the harmony of society. These include the increasing income gap among all citizens, with the Gini Index rising from 0.2 to 0.45; and increasing income disparities between urban and rural areas, and between industry wages. It concludes that the crucial point of China’s income distribution reform has not been to enhance the income level of any particular class, but rather to regulate and adjust the order and relationships of income distribution, in order to reduce the income gap caused by a dualistic economic structure, abnormally high incomes, and especially monopolies and corruption.

Keywords:   income distribution, Chinese economy, China, economic policy, income gap

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