Capitalization of Productive Factors and Income Distribution Problems - Unraveling the Cruxof China＇s Income
When observing China＇s income distribution problems .from an international perspective, we find that China＇s income inequality is not much different from developed countries after primary distribution. The real difference between China and developed countries is that income inequality in developed c...
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| Published in | 中国经济学人：英文版 no. 5; pp. 16 - 30 |
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| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
2013
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| Subjects | |
| Online Access | Get full text |
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| Summary: | When observing China＇s income distribution problems .from an international perspective, we find that China＇s income inequality is not much different from developed countries after primary distribution. The real difference between China and developed countries is that income inequality in developed countries will reduce greatly after income redistribution while the income inequality remains the same for China. Therefore, one can conclude that income inequality in China derives from the ineffectiveness of redistribution. However, a large income gap is not the main reason for skewed income distribution in China. In fact, the problem lies in unfair distribution resulting from factor capitalization. A handful of people have taken proceeds from public assets at the expense of all the people, which has led to social poIarization. To remove unfair distribution, China should improve its means of redistribution to narrow its income gap in order to develop a fair and reasonable pattern of income distribution. |
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| Bibliography: | income distribution, capitalization o f factors, unfair distribution, Gini coefficient. 11-5578/F When observing China＇s income distribution problems .from an international perspective, we find that China＇s income inequality is not much different from developed countries after primary distribution. The real difference between China and developed countries is that income inequality in developed countries will reduce greatly after income redistribution while the income inequality remains the same for China. Therefore, one can conclude that income inequality in China derives from the ineffectiveness of redistribution. However, a large income gap is not the main reason for skewed income distribution in China. In fact, the problem lies in unfair distribution resulting from factor capitalization. A handful of people have taken proceeds from public assets at the expense of all the people, which has led to social poIarization. To remove unfair distribution, China should improve its means of redistribution to narrow its income gap in order to develop a fair and reasonable pattern of income distribution. Zhang Juwei and Cheng Jie Institute of Population and Labor Economics, Chinese Academy of Social Science,s＇, Beijing, China |
| ISSN: | 1673-8837 |