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The Evolution of Unequal Opportunities Relating to China’s Income Distribution: The Formation Mechanism and Countermeasures (No.158, 2019)
2019-10-25
By Li Ying, China Development Research Foundation
Research Report, No.158, 2019 (Total 5658) 2019-9-10
Abstract: The reduction of the opportunity inequality in income distribution is the focus of the policies to narrow the income gap and enhance the distribution equity. From 2008 to 2015, in light of income inequality, the opportunity inequality caused by uncontrollable individual environmental factors fell from 46.36% to 34.88%, but we still need to keep alert to the surge of urban opportunity inequality. The contribution rate caused by urban and rural household registration to opportunity inequality has dropped from 17.53% to 10.79%, which is the primary factor inducing opportunity inequality plus the influencing factors such as region, gender, age and family background which differ between urban and rural areas. The opportunity inequality indirectly induced by environmental factors through education has decreased from 33.72% to 30.43%, while the proportion of rural education with an indirect influence fell significantly but still higher than that of urban areas. In the future, multiple measures are required to reduce opportunity inequality. One, equal and diversified education opportunities need to be created so as to block the indirect channels relating to education that may cause opportunity inequality; two, with regard to the initial distribution, the labor market discrimination needs to be eliminated with the aim of promoting opportunity equality through proper distribution rules; three, as regards redistribution, work needs to be done to promote the flow of social entities at various levels by alleviating opportunity inequality through tax collection and transfer payments.
Key words: opportunity inequality, income inequality, countermeasures for narrowing income inequality
