Abstract
On the basis of a household data set, this paper: compares household income inequality in urban and rural China; decomposes inequality into intra-and interprovincial components; and analyzes the contribution of various income sources to total income equality. The main findings of the paper are, first, that unlike in most developing economies, income inequality in urban areas is lower than in rural areas. Second, nationwide income inequality is due mostly to intraprovincial inequality. Third, components of income associated with economic reforms are more unequally distributed than the rest.
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