Income inequality in China

Chuliang Luo and Shi Li

Chapter 2 in Handbook on Inequality in China, 2025, pp 15-39 from Edward Elgar Publishing

Abstract: China has experienced decades of economic growth and rising inequality. This chapter discusses the evolution of income inequality and the contribution of income composition. Various sources of estimated Gini coefficients consistently point to the persistent rise in income inequality during the period of economic transition. Because of the urban-rural segmentation, the urban-rural divide between inequality and within inequality are discussed in turn. National inequality is highly correlated with urban-rural income inequality. The urban-rural (between group) inequality accounted for a large but declining share of the total inequality. Income inequality within both urban and rural areas increased. Gini decompositions are carried out to identify the contributions of income components to national, within urban and rural inequality, respectively.

Keywords: Income inequality; Urban-rural inequality; Urban inequality; Rural inequality; Gini decomposition; Gini coefficients (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035317790
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