Income and Inequality in China: Composition, Distribution and Growth of Household Income, 1988 to 1995

Abstract

The first comprehensive effort to estimate household income and its distribution in China according to standard international definitions was made for the year 1988 by an international group of economists working with members of the host institution, the Economics Institute of the Chinese Academy of Social Sciences (CASS). The sample survey designed by this team produced estimates of household income that were substantially different from those of the State Statistical Bureau (SSB), based on its annual surveys, with different implications for both the average standard of living and the degree of inequality of income distribution. The study, first reported in the pages of this journal in December 1992, found that per capita household income was both substantially higher and more unequally distributed than suggested by the SSB estimates. It also provided insights into sources of inequality in China that were unobtainable from the published official data on income and its distribution.