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Practices and Changes in China’s Income Distribution over the Last 40 Years

In: Forty Years of Renovating the Income Distribution in China

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  • Heng Quan

    (Shanghai Academy of Social Sciences)

Abstract

Over four decades, the Chinese government has tried to update the theory of income distribution, starting with addressing equalitarianism. Gradually, an income distribution system suited to the primary stage of socialism has been established, which combines distribution according to work with distribution according to production factors. It was a creative extension of the socialist theory of income distribution of Karl Marx. It must be noted that this process was underpinned by people’s ideological awareness and its shift. Considering the social realities at the primary stage of socialism, we gradually replaced the singular system of distribution according to work with the pluralistic one that guarantees the redistribution of economic benefits among all members of the society. In the new system, distribution according to work is predominant and it is combined with distribution according to production factors. The change has mobilized all productive forces to participate in economic development, and fueled the growth of productivity.

Suggested Citation

  • Heng Quan, 2021. "Practices and Changes in China’s Income Distribution over the Last 40 Years," Springer Books, in: Forty Years of Renovating the Income Distribution in China, chapter 0, pages 39-73, Springer.
    • Handle: RePEc:spr:sprchp:978-981-33-6244-4_2
    DOI: 10.1007/978-981-33-6244-4_2
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