China’s Rising Inequality

"There are major differences between regions and between urban and rural areas, but the most serious inequality is the difference between urban and rural areas" (Saich, 2011: 316). Introduction - China's Inequality China, like the rest of the world, is not affected by inequality. China has experienced tremendous economic growth over the past two decades, but the level of inequality is rising. The hukou system can be regarded as a factor of inequality in Chinese citizens.

The main trend in today's world is an increase in inequality. Inequality is increasing more or less in all countries, America, UK, China, India. But who is leaving the most serious? Well, that is the person with the least education. Who has the least savings. Who has the smallest social support system. Who has the least opportunity. Who will enjoy the weakest privilege. Who are those people now? Young people Unfortunately, these are at the confluence of all these vulnerabilities. They have no time to collect savings and income. They do not have the time to acquire advanced degrees and diplomas. They do not have time to build strong social support. Of course, tax cuts and double citizenship etc. They never purchased privileges for themselves. Therefore, unless they have wealthy parents, they are self-destructive and society becomes obsolete, injustice, injustice.

American politicians and many others are increasingly worried about the expansion of income disparity among Americans. However, in China and India, expansion of inequality is not at first glance. As far as China and India are concerned, the increase in inequality accompanies the acceleration of economic growth, which has improved the living standards of rich and poor. In the United States, the increase in inequality is accompanied by an increase in return to education and other skills. Improving the return on investment in human capital is beneficial and desirable, and we believe that policies aimed at coping with inequality must take into account the reasons. To illustrate the importance of increased human capital returns to inequality, consider Figure 1, which shows the wage premium of university-educated workers compared to high school graduates.

Summary: Significant growth in China's economy is accompanied by rapid growth of income disparity. This paper reviews the historical trends and patterns of income disparities in China, explores the root cause of the increase in income gap and uses the functional allocation of income methods to understand China's income disparity. This analysis emphasizes whether an increase in the return on capital will be an important reason for expanding the income gap compared to China's wage income. The evidence presented in this paper shows that the rapid growth of the Chinese economy has always depended on various models of high profit for capital such as financial capital and real estate, while the ownership of capital is not very equal . This discovery encouraged us to rethink the reasons for income disparities in China and to develop appropriate policies based on new ways to understand imminent problems of China's income distribution.