Work

How Common Is the Prosperity? The Trends and Nature of China's Income Inequality, 1988–2018

Year: 2025

Type: article

Abstract: ABSTRACT We use nationally representative survey data to study income inequality in China from 1988 to 2018. Our findings show that the rising income inequality during this period has been driven by the considerable income growth experienced by the highest earners, rather than stagnation or decline in the incomes of those at the bottom. Even individuals at the very bottom of the income distribution have experienced remarkable absolute real income growth. We further show that the increase in top incomes was largely due to labour income, and government redistribution had only a minor effect in mitigating the worsening of income inequality.

Source: Economics of Transition and Institutional Change

DOI: 10.1111/ecot.70016

Authors: Hongbin Li, Lingsheng Meng, Yunbin Zhang

Institutions: Stanford University, Chinese University of Hong Kong

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Reduced inequalities, No poverty

Open Access status: bronze

Funder: Copenhagen Business School