【主题】The evolution of income and wealth inequality in China
【摘要】China’s GDP per capita has increased from 400 USD in 1990 to 8,000 USD in 2015. Over the same period of time inequality in both income and wealth has increased substantially. This paper proposes a general equilibrium multi-sector growth model with rich heterogeneity to quantify the impact of different changes that took place in the early 1990s over inequality along the transition. Rural-urban migration has alleviated the increase in inequality by narrowing the rural-urban income gap. The emergence and growth of private sector is a fundamental engine of growth and is the key driving force behind the increasing inequality. Not following the Kuznets projection, the income concentration is ever-increasing till 2050s and no signal to decrease. By implementing conceived reforms in labor market and financial market, we notice a significant decrease in the income and wealth concentration.