Social Sciences
4 years ago

China's Income Inequality Decline Linked to Policy Changes, Future Uncertain

RePEc: Research Papers in Economics
Understanding Recent Trends in Income Inequality in the People's Republic of China
Juzhong Zhuang, Shi Li

Paper Summary

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The article explores why income inequality in China has decreased since 2008. It points out four main reasons for rising inequality in the past, such as differences in skills and wealth. The authors suggest that recent policy changes have helped reduce inequality, but more action is needed. They also mention that as China develops, taxes and financial aid may play a bigger role in reducing inequality in the future.