Inequality in China – Trends, Drivers and Policy Remedies

Inequality in China – Trends, Drivers and Policy Remedies
Author: Ms.Sonali Jain-Chandra
Publisher: International Monetary Fund
Total Pages: 31
Release: 2018-06-05
Genre: Business & Economics
ISBN: 1484357531

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China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experienced a modest decline in inequality since 2008. This paper identifies various drivers behind these trends – including structural changes such as urbanization and aging and, more recently, policy initiatives to combat it. It finds that policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations. In particular, fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side.

Inequality in China – Trends, Drivers and Policy Remedies

Inequality in China – Trends, Drivers and Policy Remedies
Author: Ms.Sonali Jain-Chandra
Publisher: International Monetary Fund
Total Pages: 31
Release: 2018-06-05
Genre: Business & Economics
ISBN: 1484360958

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China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experienced a modest decline in inequality since 2008. This paper identifies various drivers behind these trends – including structural changes such as urbanization and aging and, more recently, policy initiatives to combat it. It finds that policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations. In particular, fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side.

Income Inequality in the People's Republic of China

Income Inequality in the People's Republic of China
Author: Guanghua Wan
Publisher:
Total Pages: 0
Release: 2014
Genre:
ISBN:

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The issue of income inequality in the People's Republic of China (PRC) has attracted world-wide attention, leading to a sizable literature. This paper attempts to provide a nonexhaustive literature review of the PRC's inequality trends and determinants, and suggested government interventions. It discusses profiles of income inequality along three dimensions: interhousehold disparity, regional divides, and urban-rural gaps. This is followed by an exploration of the driving forces behind rising inequality, including the notorious hukou system, policy biases, location or geographic factors, globalization, and education. Finally, the paper summarizes and proposes government interventions for containing or reducing income inequality in the PRC. Important areas for future research are also suggested in the final section of the paper.

Unequal China

Unequal China
Author: Wanning Sun
Publisher: Routledge
Total Pages: 266
Release: 2013-05-07
Genre: Business & Economics
ISBN: 1136229973

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Economic development and a dramatic improvement in living standards in many parts of the People’s Republic of China during the past three decades of economic reforms have been hailed by the Chinese Communist Party and many commentators in the international arena as the most spectacular achievements in the history of humanity. However, three decades of economic reforms have also transformed China from one of the world’s most egalitarian societies into one of the most unequal. This book offers a comprehensive account of inequality in China from an interdisciplinary perspective. It both draws on, and speaks to, the existing body of literature that is generated mainly in the fields of economics and sociology, while extending its scope to also examine the political, social, moral and cultural dimensions of inequality. Each chapter addresses the question of inequality from a specific context of research, including housing, health care, social welfare, education, migration, land distribution, law, gender and sexuality. Moving beyond traditional socio-economic theories, the contributors to this volume explore a wide range of social, political, economic and cultural practices that result from, as well as further entrench, the inequalities in Chinese society. Importantly, the essays in Unequal China probe the hidden causes of inequality - namely, the role of state power and the importance of culture - and underline how both state power and cultural factors have a key part to play in legitimating inequality. With an innovative approach that moves beyond the economic and sociological roots of inequality in China, this volume is a welcome addition to what is a growing field of study, and will appeal to students and scholars interested in Chinese culture and society, Chinese politics and Asian social policy.

Understanding Recent Trends in Income Inequality in the People's Republic of China

Understanding Recent Trends in Income Inequality in the People's Republic of China
Author: Juzhong Zhuang
Publisher:
Total Pages: 24
Release: 2016
Genre:
ISBN:

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This paper examines underlying factors that could explain the decline in income inequality in the People's Republic of China (PRC) since 2008 and inquires whether the decline indicates that the PRC's income inequality has peaked following the Kuznets hypothesis. The paper first identifies four key drivers of rising income inequality in the PRC since the mid-1980s: rising skill premium, declining share of labor income, increasing spatial inequality, and widening inequality in the distribution of wealth. It then provides evidence that the reversal of these drivers, with the exception of wealth inequality, could partly explain the decline in income inequality since 2008. The paper argues that since part of the reversal of these drivers is policy induced, it is important that the policy actions continue for income inequality to decline further. The paper further argues that a critical factor underlying the Kuznets hypothesis is that taxation and transfers play a bigger role in income redistribution as a country becomes more developed, while their role is still limited in the PRC, the future path of the country's income inequality may not be one directional; and reducing income inequality significantly may require personal income tax and transfers to play a greater role over time.

Managing the Middle-Income Transition

Managing the Middle-Income Transition
Author: Juzhong Zhuang
Publisher: Edward Elgar Publishing
Total Pages: 593
Release: 2015-02-27
Genre: Business & Economics
ISBN: 1783477709

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The growth model of the People�s Republic of China (PRC) has been based on high investment and exports, a low-cost advantage, and government interventions. This model has successfully transformed the country from a low-income to an upper middle-income

Inequality and Public Policy in China

Inequality and Public Policy in China
Author: Björn A. Gustafsson
Publisher: Cambridge University Press
Total Pages: 19
Release: 2008-04-07
Genre: Business & Economics
ISBN: 113947006X

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This volume examines trends in inequality in the People's Republic of China. It contains findings on inequality nationwide, as well as within the rural and urban sectors, with an emphasis on public policy considerations. Several chapters focus on inequality of income; others analyse poverty, inequality in wealth, and the distribution of wages. Attention is given to groups such as migrants, women, and the elderly, as well as the relationship between income and health care funding and the impact of the rural tax reform. All contributors to this volume make use of a large, nationwide survey of Chinese households, the product of long-term co-operation between Chinese and international researchers that is unique in its scope and duration. Using these data, the contributors examine changes in inequality from 1988 to 2002.

People's Republic of China

People's Republic of China
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
Total Pages: 77
Release: 2017-08-15
Genre: Business & Economics
ISBN: 1484314727

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This Selected Issues paper examines the drivers and prospects for high levels of savings in China. China has one of the highest levels of national savings in the world, which is at the heart of its external and internal imbalances. High and rising household savings have mainly resulted from demographic changes as a result of the one-child policy and the breakdown of the social safety net during the transition from a planned to a market economy. Demographic changes will put downward pressure on national savings. Policy efforts to strengthen the social safety net and reduce income inequality are also needed to reduce savings further and faster and to boost consumption.

Rising Inequality in China

Rising Inequality in China
Author: Shi Li
Publisher: Cambridge University Press
Total Pages: 531
Release: 2013-10-31
Genre: Business & Economics
ISBN: 1107002915

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This book examines the evolution of economic inequality in China from 2002 to 2007; a sequel to Inequality and Public Policy in China (2008).