Increasing Wage Inequality in China: Efficiency Versus Equity?
Increasing wage inequality is a feature of many economies in recent years, and the same is true of China. Whereas in most countries it is normally interpreted as a move from one market equilibrium to another, in China it is more likely to reflect a move away from extreme disequilibirum. Two national cross-section household surveys, for the years 1988 and 1995, are analysed, first to document the widening inequality and then to explain it.
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