Income gaps in China kept widening over the past four decades of economic transition. First, this paper describes the change in income gaps before and after reform and opening-up in 1978 and found that income gaps had...Income gaps in China kept widening over the past four decades of economic transition. First, this paper describes the change in income gaps before and after reform and opening-up in 1978 and found that income gaps had been expanding between urban and rural areas, within cities and within the countryside. However, this did not lead to income polarization since low-income groups only had a slower income growth compared with highincome groups. The number of poor people continuously reduced thanks to rapid economic growth. Over the past decade, the widening of income gaps has been initially curbed. Accordingly, we explained the impact of economic transition on income distribution from the perspectives of market-based distribution, ownership structure, opening-up and internal income distribution. Lastly, this paper provides an in-depth analysis on urban-rural income gaps, excessive compensation in monopolistic sectors and income inequalities arising from corruption. To address these problems, it is important to enhance tax regulation, increase transfer payments to poor people, improve social security, equalize public services, enhance poverty relief and develop a fairer income distribution system.展开更多
文摘Income gaps in China kept widening over the past four decades of economic transition. First, this paper describes the change in income gaps before and after reform and opening-up in 1978 and found that income gaps had been expanding between urban and rural areas, within cities and within the countryside. However, this did not lead to income polarization since low-income groups only had a slower income growth compared with highincome groups. The number of poor people continuously reduced thanks to rapid economic growth. Over the past decade, the widening of income gaps has been initially curbed. Accordingly, we explained the impact of economic transition on income distribution from the perspectives of market-based distribution, ownership structure, opening-up and internal income distribution. Lastly, this paper provides an in-depth analysis on urban-rural income gaps, excessive compensation in monopolistic sectors and income inequalities arising from corruption. To address these problems, it is important to enhance tax regulation, increase transfer payments to poor people, improve social security, equalize public services, enhance poverty relief and develop a fairer income distribution system.
