areas in terms of income, social security, public services, reflecting government policies and political institutions di
Rising income and wealth inequality in China Li Shi Beijing Normal University
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1. Some features of income inequality in China.
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2. . Some features of wealth inequality in China.
1. Some features of Changes in income inequality in China l
Increasing inequality in all the aspects
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1. Urban areas:
Gini 0.15 (1981) l Dt /Db 4.4 (1988) l
0.36(2011) 12 (2007)
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3. Entire China
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Gini
0.38 (1988)
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Dt /Db 13.3 (1988)
0.47 (2013) 23.3 (2007)
Changes in Gini coefficients in China as a whole, 1981-2012
4. Significant differences between urban and rural areas
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Significant differences between urban and rural areas in terms of income, social security, public services, reflecting government policies and political institutions discriminating against rural people.
Income ratio of urban and rural households
Importance of urban-rural income gap in total inequality in China Theil decomposition:
1988： 37%， 1995： 41%， 2002：46%, 2007: 51%。
Wealth Distribution in China
Wealth share by decile group Decile (Low to high)
Wealth Share / Urban
Wealth Share / Rural
Wealth Share / National
2002
2010
2002
2010
2002
2010
1
0.8
0.8
0.7
0.3
0.6
0.1
2
2.5
1.7
2.6
1.2
1.8
0.5
3
4.1
2.2
4.1
1.7
2.9
0.9
4
5.5
2.8
5.4
2.3
3.9
1.5
5
6.8
3.5
6.8
3.1
5.2
2.4
6
8.4
4.5
8.3
4.2
6.9
3.5
7
10.2
5.8
10.2
5.7
9.1
5.1
8
13.0
8.3
12.7
8.0
12.6
7.5
9
17.2
13.3
16.7
12.1
18.3
13.2
10
31.7
57.1
32.5
61.5
38.7
65.4
Widening wealth inequality in terms of Gini
ü Rural gini: from 0.453 to 0.709 ü Urban gini: from 0.450 to 0.659 ü National gini: from 0.537 to 0.758
Simulated results of wealth inequality in China National Wealth Inequality（Gini） 2002
2010
All samples
0.537
0.758
If top 1% deleted
0.511
0.677
If top 5% deleted
0.468
0.596
If bottom 1% deleted
0.532
0.754
If bottom 5% deleted
0.514
0.744
Housing prices and wealth inequality in China Wealth inequality (Gini) 2002 2010 2010年 （1） （2）（assume constant housing prices） （3） National 0.537 0.758 0.684
Changes in Gini during 2002-2010
Due to（%）
Housing other Prices ((3)-(1))/(4) （4）= （2）-（1） ((2)-(3))/ (4) 0.221
