## Chart of the Week: Inequality in China

_IMF Blog, September 20, 2018_

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- [Markdown version](/en/blogs/articles/2018/09/20/chart-of-the-week-inequality-in-china/index.md)
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## Bibliographic details
- Authors: Sonali Jain-Chandra
- Published: September 20, 2018

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### Overview and key statistic
- Author: Sonali Jain-Chandra
- Date: September 20, 2018
- Caption: A gardener outside a luxury auto showroom in Beijing. China has moved from being moderately unequal in 1990 to being one of the world’s most unequal countries (photo: Stephen Shaver/UPI/Newscom)
- The Gini coefficient has risen by 15 points since 1990 to 50. (A reading of zero would indicate that everyone has the same income, while a reading of 100 would mean that the richest person gets all the income.)

### Main findings
- More than two decades of spectacular economic growth in China have raised incomes dramatically and lifted millions out of poverty.
- Growth hasn’t benefited all segments of the population equally; China moved from being moderately unequal in 1990 to being one of the world’s most unequal countries.
- Inequality has leveled off and even declined slightly since 2008, reflecting policy measures undertaken by the government.
- Without additional policy changes, inequality is likely to rise further.

### Drivers of rising inequality
- Differences in education: Rapid technological change and industrialization have boosted demand, and therefore incomes, for highly skilled workers.
- Urban–rural income differences: Educational attainment is lower in rural areas, and China’s hukou system of household registration limits migration to urban areas, where wages are higher.

### Policies China has implemented to limit inequality
- Raised the minimum wage.
- Raised the minimum threshold for income taxes multiple times.
- Abolished agricultural taxes.
- Improved public services and social protection in the countryside.

### Policy recommendations and options to reduce future inequality
- Rely more on the personal income tax and less on regressive consumption taxes.
- Make the design of personal income taxes and social security taxes more progressive.
- Further increase spending on social services, especially in rural areas, to reduce inequality.

*Chart of the Week: Inequality in China — IMF blog post by Sonali Jain-Chandra, September 20, 2018.*

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## Content in this bundle

- **本周图表：中国的不平等状况; IMF blog; 2018年9月20日**
  - [本周图表：中国的不平等状况; IMF blog; 2018年9月20日 (Markdown version)](/external/chinese/np/blog/2018/092018c.pdf.md){rel="alternate" type="text/markdown"}
  - [本周图表：中国的不平等状况; IMF blog; 2018年9月20日 (PDF)](/external/chinese/np/blog/2018/092018c.pdf){rel="external" type="application/pdf"}
- **今週のグラフ: 中国における格差:　ソナリ・ジェイン＝チャンドラ著、IMFブログ, 2018年9月20日**
  - [今週のグラフ: 中国における格差:　ソナリ・ジェイン＝チャンドラ著、IMFブログ, 2018年9月20日 (Markdown version)](/external/japanese/np/blog/2018/092018j.pdf.md){rel="alternate" type="text/markdown"}
  - [今週のグラフ: 中国における格差:　ソナリ・ジェイン＝チャンドラ著、IMFブログ, 2018年9月20日 (PDF)](/external/japanese/np/blog/2018/092018j.pdf){rel="external" type="application/pdf"}

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## References

- [https://www.imf.org/wp-content/uploads/2018/09/BLOG-1024x600-China-Gardner-outside-luxury-showroom-Shaver-UPI-Newscom-Chinaupiphotostwo335851.jpg](https://www.imf.org/wp-content/uploads/2018/09/BLOG-1024x600-China-Gardner-outside-luxury-showroom-Shaver-UPI-Newscom-Chinaupiphotostwo335851.jpg)
- [https://www.imf.org/wp-content/uploads/2018/09/eng-august-30-china-inequality-3.png](https://www.imf.org/wp-content/uploads/2018/09/eng-august-30-china-inequality-3.png)
- [Chart of the Week: China’s Thrift, and What to Do About It](https://blogs.imf.org/2018/02/26/chart-of-the-week-chinas-thrift-and-what-to-do-about-it/)
- [China’s Economic Outlook in Six Charts](https://www.imf.org/en/News/Articles/2018/07/25/na072618-chinas-economic-outlook-in-six-charts)
- [5 Things You Need to Know About Inequality](https://blogs.imf.org/2018/01/23/5-things-you-need-to-know-about-inequality/)

_Source: https://www.imf.org/en/blogs/articles/2018/09/20/chart-of-the-week-inequality-in-china_