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

Thomas Piketty (), Li Yang and Gabriel Zucman
Additional contact information
Li Yang: World Bank and Paris School of Economics, 48 boulevard Jourdan, 75014 Paris, France
Gabriel Zucman: Department of Economics, University of California, Berkeley, 530 Evans Hall, #3880, Berkeley, CA 94720, and NBER

No 2018-54, HKUST IEMS Working Paper Series from HKUST Institute for Emerging Market Studies

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.

New Economics Papers: this item is included in nep-cna, nep-his and nep-tra
Date: 2018-03, Revised 2018-03
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http://iems.ust.hk/assets/publications/working-papers-2018/iemswp2018-54.pdf First version, 2018 (application/pdf)

Related works:
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 (2017) Downloads
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 (2017) Downloads
Working Paper: Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 (2017) Downloads
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