Inequality in China : An Overview

This paper provides an overview of
research on income inequality in China over the period of
economic reform. It presents the results of two main sources
of evidence on income inequality and, assisted by various
decompositions, explains the reasons income inequality has
increased rapidly and the Gini coefficient is now almost
0.5. This paper evaluates the degree of income inequality
from the perspectives of people's subjective well-being
and government concerns. It poses the following question:
has income inequality peaked? It also discusses the policy
implications of the analysis. The concluding comments of
this paper propose a research agenda and suggest possible
lessons from China's experience that may be useful for
other developing countries.