Abstract
The relationship between inequality and mega-trend urbanization in China is complicated. At least in the first two decades of economic reform, urbanization is one of primary drivers of rising inequality across the country. Using between-and within-group components of Theil's T-statistics measured across regions and sectors, this paper provides new estimates of the evolution of China's regional inequality during the reform period. We particularly analyze the associations between inequality and China's megacities-oriented urbanization strategy. We find that China's overall pay inequality started to rise rapidly in the early 1990s, that it peaked in 2008, with the between-provinces component peaking as early as 2002. Since 2008 overall pay inequality has decreased, with between-province and within inequality both showing steady declines. In these respects, the evolution of pay inequality in China mirrors the trajectory expected under the hypothesis of a Kuznets' curve.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
