Economics, Econometrics and Finance
8 years ago

Redistribution Mechanism in China Widens Income Gap Among Urban Residents.

Yunnan Caijing Daxue xuebao
Empirical Analysis on the Contrary Regulation of Redistribution Mechanism to the Income Gap of Urban Residents
Wang Shao-guo

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The study looked at income differences in Chinese cities from 1981 to 2006. They used a measure called the Gini coefficient to see how well government policies helped reduce these differences. The results showed that these policies didn't always work as expected. In fact, some policies made the income gap wider, especially before 2004. The study also found that individual income taxes could be improved to help narrow the gap.