Nearly half of China’s income gap is contributed by the gap between urban and rural areas


According to Voice of China “news and newspaper summary” report, the Research Center of Income Distribution in China announced the results of a study that the income gap between China’s urban and rural areas and also the income gap among different industries is increased. Nearly half of China’s income gap is  contributed by the income gap between urban and rural areas. In addition, the income gap within the rural residents continues to expand, and the rural income gap is even greater than that within the rural area.

Industry analysis showed that, in China average income of workers in agriculture, forestry, animal husbandry and fishery are the lowest while income of workers in electricity, communications, finance and insurance industries and other monopoly industries are the highest with income differences between the highest income and lowest income within the same industry and also across different industries continue to increase. In term of the income gap between the monopoly industries and competitive industries, the unreasonable part accounts more than 50% of the total gap.

The research group suggested that the income distribution among residents, businesses and government departments is not reasonable, and the government regulation of redistribution of income is still not enough to meet the requirements of the income distribution system reform in China.

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