The paper addresses three issues: (i) the effects of economic reform on the distribution of income in the urban areas of China, (ii) changes in the incidence of urban poverty and (iii) the role of government policy in accentuating urban poverty and inequality. The empirical analysis is based on two purpose designed national sample surveys conducted in 1988 and 1995. We show that urban inequality has increased sharply and that urban poverty, depending on the indicator used, either declined insignificantly or worsened significantly. Government policies were unequalizing.

It is arguable that the most important event in the world economy in recent decades has been the rise of China, from being on a par with Sub Sahara Africa at the start of economic reform to being an economic superpower today. That rise remains under-researched. Moreover, the great structural changes which accompanied economic growth require examination. The nationally representative China Household Income Project (CHIP) surveys, conducted for the years 1988, 1995, 2002, 2007, 2013, and 2018, permit a detailed examination of many important aspects of a country's economic development. Much of the analysis of this Element is closely related to, and largely caused by, China's remarkable economic growth and income distribution over the thirty years. This title is also available as Open Access on Cambridge Core.

China's explosive economic growth since 1988 has not resulted in an equal increase of income among all Chinese citizens. The authors explore a range of reasons for the disparity and base their conclusions on strong empirical evidence--especially the 1996 survey conducted by the State Statistical Bureau.

Economic transition from a planned to a market oriented economy is often associated with a widening of income inequality. The nature of this change, however, may differ during different stages of the economic transition. This paper investigates the increase in income inequality in urban China during two phases of economic reform: a moderate reform era (1988-95) and a radical reform era (1995-99). It is found that although income inequality increased considerably during both stages, the nature and causes of the increase are different. In the moderate reform period, the increase in inequality was a result of some parts of society sharing more of the economic gain than others, and the main cause of this inequality is regional income dispersion. During the radical reform period income reductions at the lower end of the distribution is observed, and it is mainly due to the large-scale unemployment generated by labor reallocation.

China has experienced over a quarter century of rapid economic growth, which has had a phenomenal impact on the global economy. Entering into the twenty-first century implies that China has begun a new phase of economic and social development. Yao reviews the economic development history of contemporary China from 1949 to the present, paying special attention to growth, inequality and poverty reduction. A real Chinese economic miracle should have two important features: high income growth and a fair distribution system so that poverty can be eradicated.

Thesis (M.A.) from the year 2019 in the subject Business economics - Economic Policy, grade: 1,7, University of Bayreuth, language: English, abstract: This thesis aims to shed light to the various characteristics and sources of income inequality in China and thereby demonstrate their interrelations on economic growth using a literature review approach and by examining the impact of differences in the propensity to save among various Chinese income groups. In the course of this, China’s current degree of income inequality is established, while identifying various forces and drivers behind these changes since the economic opening process initiated in 1978. Since adoption of the open-market policy reforms in 1978, China has experienced rapid economic growth. At the same time, its level of income inequality turned from one of the world's most equal to one of the most unequal. During long periods of time China was the country that experienced the fastest increase in income inequality. This bags the question whether income inequality is in fact the causal reason for economic growth or the necessary outcome of it. In the wake of this, income inequality in China has developed into several dimensions of inequality drivers ranging from an extensive urban-rural inequality, cross-regional inequality, inequality of education or wealth inequalities.

A collection of 13 essays based on two national surveys of household income in China - in 1985 and 1995 - and prepared and carried out by the research team. These essays explore a wide range of aspects of the rapidly changing income distribution during this period.