Research Papers

I estimate income inequality in China from 2012–2018 using new methods that adjust for sparse top-income data in the China Household Finance Survey. I find Gini index estimates of 0.616 (2012), 0.604 (2014), 0.581 (2016), and 0.590 (2018). I also document rural-urban, regional, and provincial inequality patterns in Shanghai, Guangdong, Liaoning, Henan, and Gansu.

Academic and policy discussions are complicated by a lack of consensus on income inequality in China. The existing discrepancies result from the data and methodological issues. In response, I provide estimates of income inequality levels in China using a dataset designed to oversample rich households, and by developing new robust measurement procedures applicable to the datasets with extreme high-income values.

Most researchers share the view that existing high levels of income inequality pose significant warning signs for future economic progress and remain an important challenge for Chinese society and its policymakers. New empirical evidence on the levels and trends of income inequality in China can help inform the design of effective policy interventions.