Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015

Thomas Piketty, Gabriel Zucman and Li Yang

No 12410, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper combines national accounts, survey, wealth and fiscal data (including recently released tax data on high-income taxpayers) in order to provide consistent series on the accumulation and distribution of income and wealth in China over the 1978-2015 period. We find that the aggregate national wealth-income ratio has increased from 350% in 1978 to 700% in 2015. This can be accounted for by a combination of high saving and investment rates and a gradual rise in relative asset prices, reflecting changes in the legal system of property. The share of public property in national wealth has declined from about 70% in 1978 to 30% in 2015, which is still a lot higher than in rich countries (close to 0% or negative). Next, we provide sharp upward revision of official inequality estimates. The top 10% income share rose from 27% to 41% of national income between 1978 and 2015, while the bottom 50% share dropped from 27% to 15%. China’s inequality levels used to be close to Nordic countries and are now approaching U.S. levels.

Date: 2017-10
New Economics Papers: this item is included in nep-cna, nep-his and nep-tra
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Citations: View citations in EconPapers (89)

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Related works:
Journal Article: Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015 (2019)
Working Paper: Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015 (2019)
Working Paper: Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015 (2019)
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 (2018)
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978- 2015 (2017)
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978- 2015 (2017)
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978- 2015 (2017)
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 (2017)
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