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Explaining China s Changing Income Inequality: Market vs. Social Benefits Qin Gao & Carl Riskin.

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Presentation on theme: "Explaining China s Changing Income Inequality: Market vs. Social Benefits Qin Gao & Carl Riskin."— Presentation transcript:

1 Explaining China s Changing Income Inequality: Market vs. Social Benefits Qin Gao & Carl Riskin

2 Table 1: Urban Gini Ratios Market Income Total Income Note: Urban market income includes wages, income from private enterprises, property income and rental value of owner-occupied housing. Total income also includes social benefits (cash and in-kind), private transfers, and taxes and fees (a negative item).

3 Table 2: Changes in Household Income in Urban China Levels (¥)Composition (%) Market Income2,4804,7448, Social Benefits1,9971,7382, Private Transfers Taxes & Fees Total Income4,5766,52110,333100

4 Table 3. Concentration Ratios of Broad Income Components (Pre-tax) Total market income Wages Rental value of own housing Total social benefits Total cash transfers Total in-kind transfers Private Transfers Total Pre-Tax Income (Gini)

5 Table 4. Contribution of Income Sources to Overall Inequality (%) Total market income Wages Rental value of own housing Total social benefits Total cash transfers Total in-kind transfers Private Transfers Total Pre-Tax Income100

6 Table 5: Changes in Social Benefits in Urban China Levels (¥) Share of Income (%) Total Social Benefits1,9971,7382, Cash Transfers , Social Insurance , Supplementary Income Public Assistance Health Housing Food Assistance Other In-kind

7 Table 6. Concentration Ratios of Urban Social Benefit Components Social Insurance Supplementary income Public assistance Health Housing Food Other in-kind Total Pre-Tax Income (Gini)

8 Table 7. Contribution of Social Benefits to Overall Urban Inequality (pre-tax) (%) Total Social Benefits Housing Social Insurance Food Health Supplementary income Public assistance Other in-kind

9 Table 8: Changes in Household Per Capita Income, Rural China Levels(yuan ) Composition(%) Year Market Income Social Benefits Private Transfers Taxes & fees Total Income

10 Table 9. Sources of Reduced Inequality of Rural Income

11 Table 10. Changes in Per Capita Social Benefits, Rural China Level (Yuan) Composition(%) Cash Transfers Social Insurance Supplementary Income Public Assistance Health Housing Food Assistance Other In-kind benefits Total Social Benefits Total Income

12 Table 8: Share of Tax Payments in Total Household Income by Decile in Rural China (%) Decile Total


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