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Income inequality in China

Causes and policy responses

Bibliographic Data

ID12918017
AuthorsYixiao Zhou (0000-0001-7712-2776, Curtin University, corresponding author), Ligang Song (0000-0002-5700-2352, Australian National University)
Year2016
Volume9
Issue2
Pages186-208
Publication date2016-05-03
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueChina Economic Journal (JOURNAL)
Journal identifiersISSN: 1753-8963 • E-ISSN: 1753-8971
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/17538963.2016.1168203
OpenAlexW2345622242
LanguageEN
Citations received33
References cited30

The phenomenal economic growth in China has been accompanied by a rapid increase in income inequality. This paper reviews the historical trends and patterns of income inequality in China, discusses the potential causes underlying rising income inequality, and applies the functional distribution of income approach in understanding China’s income inequality. This analytical approach highlights how rising return to capital relative to wage incomes can be an important source for increasing income inequality in China. The paper provides the evidence which shows that the rapid economic growth in China has been relying on a model that pays high returns to various kinds of capital including financial capital and real estate, while the ownership of capital is very unequal. This finding prompts us to rethink about the causes of China’s income inequality and to formulate appropriate policies based on the new way of understanding this pressing issue of income distribution in China

China · Demographic economics · Development economics · Economic inequality · Economics · Geography · Income distribution · Income inequality metrics · Inequality · China's Socioeconomic Reforms and Governance · Income, Poverty, and Inequality · Social Policy and Reform Studies

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Unique citing works33
Citations per year3,67
Citation span2017 - 2026 (10)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 33

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