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A Survey on Income Inequality in China

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  • Junsen Zhang

Abstract

After China's recent great success in eliminating absolute poverty, addressing relative income inequality becomes a more important issue. This survey finds that income inequality rapidly increased in the first three decades since 1978 but stabilized and slightly declined in the past decade, consistent with the well-known Kuznets hypothesis. In addition to documenting the trend and patterns over time and across groups and regions, seven sources of income inequality are systematically discussed with an effort to reconcile and extend the existing literature. Furthermore, a negative correlation is documented between income inequality and intergenerational mobility, consistent with the Great Gatsby curve observed in developed countries.

Suggested Citation

  • Junsen Zhang, 2021. "A Survey on Income Inequality in China," Journal of Economic Literature, American Economic Association, vol. 59(4), pages 1191-1239, December.
    • Handle: RePEc:aea:jeclit:v:59:y:2021:i:4:p:1191-1239
    DOI: 10.1257/jel.20201495
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    Cited by:

    1. Bianchi, Nicola & Lu, Yi & Song, Hong, 2022. "The effect of computer-assisted learning on students’ long-term development," Journal of Development Economics, Elsevier, vol. 158(C).
    2. Wang, Yan & Conesa, Juan Carlos, 2024. "Workers’ income risk and the evolution of income inequality in China," Economics Letters, Elsevier, vol. 234(C).
    3. Yang, Li & Milanovic, Branko & Lin, Yaoqi, 2023. "Anti-Corruption Campaign in China: An Empirical Investigation," SocArXiv b3jze, Center for Open Science.
    4. Targa, Matteo & Yang, Li, 2023. "The impact of communist party membership on wealth distribution and accumulation in urban China," ZEW Discussion Papers 23-057, ZEW - Leibniz Centre for European Economic Research.
    5. Yangtian Jiang & Yu Zheng & Lijun Zhu, "undated". "Unequal Transition: The Widening Wealth Gap amidst China’s Rapid Growth," Working Papers 955, Queen Mary University of London, School of Economics and Finance.
    6. Bhattarai, Keshab & Qin, Weiguang, 2022. "Convergence in labor productivity across provinces and production sectors in China," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
    7. Yunwei Chen & Sean Sylvia & Sarah-Eve Dill & Scott Rozelle, 2022. "Structural Determinants of Child Health in Rural China: The Challenge of Creating Health Equity," IJERPH, MDPI, vol. 19(21), pages 1-12, October.
    8. Gong, Chen & Sologon, Denisa Maria & Nimeh, Zina & O'Donoghue, Cathal, 2023. "Decomposition of the Changes in Household Disposable Income Distribution in China," IZA Discussion Papers 15914, Institute of Labor Economics (IZA).
    9. Zhang, Junsen & Zhou, Kang, 2023. "Quota removal, destination-specific export shocks, and skill acquisition in China," Journal of Development Economics, Elsevier, vol. 165(C).
    10. Davies, James B. & Lluberas, Rodrigo & Waldenström, Daniel, 2024. "Long-Term Trends in the Distribution of Wealth and Inheritance," Working Paper Series 1502, Research Institute of Industrial Economics.
    11. Chen, Yuanyuan & Yuan, Meng & Zhang, Min, 2023. "Income inequality and educational expenditures on children: Evidence from the China Family Panel Studies," China Economic Review, Elsevier, vol. 78(C).
    12. Hu, Wanqi & Huang, Wangen & Wu, Jianxin & Zhang, Chaokai, 2024. "Place-based policies and local human capital accumulation: Evidence from China's special economic zone program," China Economic Review, Elsevier, vol. 85(C).
    13. Fischer, Thomas, 2023. "Spatial inequality and housing in China," Journal of Urban Economics, Elsevier, vol. 134(C).
    14. Jiatao Li & Ari Van Assche & Xiaolan Fu & Lee Li & Gongming Qian, 2022. "The Belt and Road Initiative and international business policy: A kaleidoscopic perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 135-151, June.
    15. Hu, Xiaoshan & Wan, Guanghua & Zuo, Congmin, 2023. "Education expansion and income inequality: Empirical evidence from China," BOFIT Discussion Papers 7/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
    16. Deng, Zhongqi & Song, Shunfeng & Jiang, Nan & Pang, Ruizhi, 2023. "Sustainable development in China? A nonparametric decomposition of economic growth," China Economic Review, Elsevier, vol. 81(C).
    17. Fredrik Sjöholm, 2023. "The Belt and Road Initiative: Economic Causes and Effects," Asian Economic Papers, MIT Press, vol. 22(1), pages 62-81, Winter/Sp.
    18. , Matteo & Yang, Li, 2023. "The Impact of Communist Party Membership on Wealth Distribution and Accumulation in Urban China," SocArXiv y4pwa, Center for Open Science.
    19. Targa, Matteo & Yang, Li, 2024. "The impact of Communist Party membership on wealth distribution and accumulation in urban China," World Development, Elsevier, vol. 181(C).
    20. Cai, Meina & Zhang, Qi & Zhao, Xiaolu, 2024. "Social Embeddedness, Power Balance, and Local Governance in China," World Development, Elsevier, vol. 179(C).

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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