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INCOME INEQUALITY IN THE PEOPLE'S REPUBLIC OF CHINA: TRENDS, DETERMINANTS, AND PROPOSED REMEDIES
Author(s) -
Wang Chen,
Wan Guanghua,
Yang Dan
Publication year - 2014
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12077
Subject(s) - inequality , economic inequality , china , government (linguistics) , globalization , psychological intervention , people's republic , economics , development economics , income inequality metrics , demographic economics , public economics , economic growth , geography , psychology , mathematical analysis , linguistics , philosophy , mathematics , archaeology , psychiatry , market economy
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.