Inequality in China: Change and Prospects

The dynamics of income inequality in China changed around the year 2000. Using panel data from the China Health and Nutrition Survey we show how  rank mobility fell from the decade immediately preceding the millennium to the decade immediately following. By contrast income mobility has carried on increasing; so has income inequality. The simultaneous increase in rigidity and inequality presents is investigated by looking at the difference between urban and rural sectors and between fast-growing coastal and inland provinces.