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Income Inequality in China and its Influencing Factors

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  • Xiaolu Wang

Abstract

While the average level of income per capita has increased in China rapidly, income inequality is becoming a more serious problem that may threaten social stability and the sustainability of economic development. This paper examines the existence in China of an inverted U-shaped curve for income inequality and economic development (known as the Kuznets curve), and tests for the effects of a series of hypothesized factors influencing income inequality.

Suggested Citation

  • Xiaolu Wang, 2006. "Income Inequality in China and its Influencing Factors," WIDER Working Paper Series RP2006-126, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-126
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2006-126.pdf
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    References listed on IDEAS

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    1. Daron Acemoglu & James A. Robinson, 2002. "The Political Economy of the Kuznets Curve," Review of Development Economics, Wiley Blackwell, vol. 6(2), pages 183-203, June.
    2. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
    3. Guanghua Wan, 2002. "Income Inequality and Growth in Transition Economies: Are Nonlinear Models Needed?," WIDER Working Paper Series DP2002-104, World Institute for Development Economic Research (UNU-WIDER).
    4. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    5. World Bank, 2003. "China - Promoting Growth with Equity : Country Economic Memorandum," World Bank Publications - Reports 14643, The World Bank Group.
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    Cited by:

    1. Hou, Xin & Gao, Jianbo, 2025. "Toward Common Prosperity: Measuring decrease in inequality in China prefecture-level cities," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 29-46.
    2. Kui-Wai Li, 2012. "Analyzing the Kuznets Relationship using Nonparametric and Semiparametric Methods," CIRJE F-Series CIRJE-F-839, CIRJE, Faculty of Economics, University of Tokyo.

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