Income distribution and public policy

Author: China Economic Reform Research Foundation
Publisher:
Publish Date: 2005-10-01
Features: The increasingly severe income inequality poses a serious challenge to social fairness. Led by Fan Gang and Wang Xiaolu, a joint expert team conducts an in-depth investigation. What factors currently affect China's income distribution? What distribution model is beneficial to economic growth while keeping the income gap within a reasonable range? What public policies should the government adopt to balance the goals of maintaining social fairness and promoting economic efficiency? Currently, one prominent issue in China's socio-economic development is the widening trend of income disparity both vertically and horizontally, which has led to a series of social problems and significantly impacted social stability. Therefore, how to ensure equity and fairness while pursuing efficiency, and how to address the social security, healthcare, employment, education, and poverty alleviation issues of vulnerable and low-income groups, increase their income, and promote the overall progress of reform and development, as well as the sustainable development of China's economy and society, are all critical to achieving the goal of building a harmonious society. This book comprehensively reviews the changes in China's household income over the past 20 years since reform, analyzes the current state, causes, and impacts of widening income gaps between regions, urban and rural areas, and different household groups, and focuses on exploring the causal relationship between policies and income distribution gaps. Based on this, it proposes policy recommendations for further adjusting public policies to narrow the income gap and promote stable and harmonious socio-economic development.