Analysis of Governmental Action in the Distribution of Personal Income During the Marketization Reform

Abstract

Since the reform of the economic system, important changes have taken place in the distribution setup of national income in China. The proportion of individual income has markedly increased and the proportion of government fiscal revenue has markedly diminished. Inequalities of income distribution are becoming increasingly prominent in the distribution of personal income, and the channels of income are becoming progressively more diversified. Such major changes in income distribution are, to an increasing extent, affecting China's national economic development, and embody a change in the mechanism of income distribution, that is, a change from the planned-economy pattern of income distribution to a socialist market economy pattern. The marketization reform of the distribution of personal income—an important component of income distribution—has also had a distinct role in promoting economic development; it has improved the efficiency of resource allocation and promoted the development of the social forces ...