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Inequality in China – Trends, Drivers and Policy Remedies
Author:
Ms. Sonali Jain-Chandra
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Niny Khor null

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Rui Mano
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Johanna Schauer null

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Mr. Philippe Wingender
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Juzhong Zhuang null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 127
Language:
English
Publication Date:
05 Jun 2018
DOI:
https://doi.org/10.5089/9781484357538.001
ISBN:
9781484357538
ISSN:
1018-5941
Pages:
31
Keywords:
WP; income share; inequality in China; per-capita income; income inequality; China; structural change; fiscal policy; guarantee system; policy variable; Policy remedy; net Gini coefficient; poverty alleviation policy; household income; government policy; market Gini coefficient; policy reform; Income distribution; Personal income; Southeast Asia
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund