Changing Trends in China’s Inequality

Abstract

This chapter examines the major trends in Chinese household incomes and inequality from 2007 to 2013 and highlights key, cross-cutting findings from the book as a whole. It begins with an overview of economic and policy developments during the period and of data and measurement issues. It reports the central estimates of China’s national income inequality, with comparisons to other studies. The chapter then discusses six cross-cutting findings from the book: 1.) after 2007 national income inequality declined, a marked change from past trends; 2.) the urban/rural income gap declined, also a change from past trends; 3.) income gaps between the East, West, and Central regions were no longer a substantial source of inequality; 4.) household wealth grew markedly and unequally; 5.) the number of Chinese households with incomes comparable to middle-class households in the developed world grew rapidly; and 6.) absolute poverty in China continued to decline and by 2013 it was quite low.