Inequality in China – Trends, Drivers and Policy Remedies

China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experie...

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Bibliographic Details
Main Author: Jain-Chandra, Sonali
Other Authors: Khor, Niny, Mano, Rui, Schauer, Johanna
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Inequality in China – Trends, Drivers and Policy Remedies  |c Sonali Jain-Chandra, Niny Khor, Rui Mano, Johanna Schauer, Philippe Wingender, Juzhong Zhuang 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2018 
300 |a 31 pages 
651 4 |a China, People's Republic of 
653 |a Income 
653 |a Income distribution 
653 |a Personal income 
653 |a Fiscal Policy 
653 |a Fiscal policy 
653 |a Aggregate Factor Income Distribution 
653 |a Environmental Taxes and Subsidies 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a National accounts 
653 |a Education 
653 |a Education: General 
653 |a Macroeconomics 
653 |a Income inequality 
653 |a Taxation and Subsidies: Externalities 
653 |a Public Finance 
653 |a Redistributive Effects 
700 1 |a Khor, Niny 
700 1 |a Mano, Rui 
700 1 |a Schauer, Johanna 
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520 |a China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experienced a modest decline in inequality since 2008. This paper identifies various drivers behind these trends – including structural changes such as urbanization and aging and, more recently, policy initiatives to combat it. It finds that policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations. In particular, fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side