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Reform, Growth, and Inequality in China *
Author(s) -
KNIGHT John
Publication year - 2008
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/j.1748-3131.2008.00099.x
Subject(s) - inequality , economics , income inequality metrics , china , income distribution , economic inequality , poverty , distribution (mathematics) , development economics , language change , divergence (linguistics) , demographic economics , labour economics , economic growth , political science , law , art , mathematical analysis , linguistics , philosophy , mathematics , literature
This paper provides a survey of the literature on inequality in China – level, change, causes, and consequences. It attempts to answer six main questions. How much has inequality risen? What is its relation to poverty alleviation? What has happened to wealth inequality? What are the main dimensions of rising income inequality? The dimensions examined are: the rural–urban divide; urban labor market reform; regional divergence; rural–urban migration; and entrepreneurship, rent‐seeking, and corruption. Was it inevitable that inequality should rise so much? Does it matter that inequality has risen? Income distribution in China is bound up with both economic reform and economic growth. This paper concludes by considering the countervailing forces that will determine the path of inequality in future years.