DP11892 The Great Chinese Inequality Turnaround

Author(s): Ravi Kanbur, Yue Wang, Xiaobo Zhang
Publication Date: March 2017
Keyword(s): Chinese Inequality Turnaround, Harmonious Development and Government Policy, Inequality and Structural Transformation, Inequality Data, Inequality Trends
JEL(s): D31, D63, O15, O53
Programme Areas: Development Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11892

This paper argues that after a quarter century of sharp and sustained increase, Chinese inequality is now plateauing and even turning down. The argument is made using a range of data sources and a range of measures and perspectives on inequality. The evolution of inequality is further examined through decomposition by income source and population subgroups. Preliminary explanations are provided for these trends in terms of shifts in policy and structural transformation of the Chinese economy. The narrative on Chinese inequality now needs to focus on the reasons for this great turnaround.