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Inequality in China: Development, transition, and policy

Author

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  • Shi Li
  • Terry Sicular
  • Finn Tarp

Abstract

In this paper we describe the major trends in China's income inequality over the past 40 years and explain them as the outcome of four interleaved stories. The first story is a standard development story characterized by structural change, market development, labour absorption, and the Kuznets inverted-U path of inequality. The second is the economic transition story, in which changes in income distribution result from the shift from plan to market. Third is incomplete transition, with opportunities for rent-seeking, corruption, and hidden income.

Suggested Citation

  • Shi Li & Terry Sicular & Finn Tarp, 2018. "Inequality in China: Development, transition, and policy," WIDER Working Paper Series wp-2018-174, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-174
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2018-174.pdf
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    References listed on IDEAS

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    Cited by:

    1. Roy van der Weide & Ambar Narayan, 2019. "China and the United States: Different economic models but similarly low levels of socioeconomic mobility," WIDER Working Paper Series wp-2019-121, World Institute for Development Economic Research (UNU-WIDER).

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