## Inequality in China – Trends, Drivers and Policy Remedies

_IMF Working Papers, June 5, 2018_

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## Bibliographic details
- Authors: Sonali Jain-Chandra, Niny Khor, Rui Mano, Johanna Schauer, Philippe Wingender, Juzhong Zhuang
- Published: June 5, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484357538.001

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### Summary and central findings
- China experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty.
- Income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world.
- Inequality has experienced a modest decline since 2008.
- The paper identifies drivers of these trends, including structural changes and recent policy initiatives to combat inequality.
- Policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations.
- Fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side.

### Drivers of inequality identified
- Structural changes such as urbanization and aging.
- Policy initiatives implemented more recently to address inequality.
- Interaction between rapid growth, structural transformation, and policy settings determining income distribution dynamics.

### Policy implications and recommended areas for reform
- Fiscal policy reforms on both the tax side and the expenditure side are highlighted as having potential to enhance inclusiveness and equity.
- Continued and targeted policy initiatives are implied as necessary because projected structural trends will exacerbate equity pressures.

### Publication and document metadata
- Title: Inequality in China – Trends, Drivers and Policy Remedies
- Authors: Sonali Jain-Chandra, Niny Khor, Rui Mano, Johanna Schauer, Philippe Wingender, Juzhong Zhuang
- Date: June 5, 2018
- Series: Working Paper No. 2018/127
- Issue: 127
- Volume: 2018
- Pages: 31
- DOI: https://doi.org/10.5089/9781484357538.001
- Stock No: WPIEA2018127
- ISBN: 9781484357538
- ISSN: 1018-5941
- Subjects: Education, Fiscal policy, Income distribution, Income inequality, National accounts, Personal income
- Keywords: China, fiscal policy, government policy, guarantee system, household income, Income distribution, income inequality, income share, inequality in China, market Gini coefficient, net Gini coefficient, per-capita income, Personal income, policy reform, Policy remedy, policy variable, poverty alleviation policy, Southeast Asia, structural change, WP

*IMF Working Paper — "Inequality in China – Trends, Drivers and Policy Remedies", Working Paper No. 2018/127 (June 5, 2018).*

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_Source: https://www.imf.org/en/publications/wp/issues/2018/06/05/inequality-in-china-trends-drivers-and-policy-remedies-45878_