The Distribution of Income in China.

• Author: Rapp, John

This volume is a collection of eight readings about various aspects of income distribution in China. The readings were written by combinations of nine individuals who participated in a significant research project started in 1988 and directed by the editors. The quality of the book largely reflects the quality of the research project.

The research project appears to be quite comprehensive and generally well done; the sample consisted of over 19,000 households. The definition of income used in the project is explained in the first chapter and a description of the survey and the methodology is set forth in an "annex" (appendix). The concept of income is broad and included in kind payments, direct subsidies and various imputed items. Two limitations are noted by the authors in the introduction. One is that the urban sample appears to be not as good as the rural sample and further research on urban income distribution is probably desirable. The other is that, because of the expanded concept of income, it is not possible to make many longer term comparisons as to how income distribution has changed.

The eight chapters in the book are organized around three interrelated parts. Part I begins with a factual description of the results of the research project and describes how income is distributed. This part also analyzes some of the distributional characteristics which occurred during the reform which began in the late 1970s. The second part contains three chapters which focus on the nature of income and wealth distribution in rural areas, including an examination of the incidence of rural poverty. The final part is focused on employment and human capital, including a chapter on the determinants of educational attainment.

There are a number of surprising findings - surprising because they are atypical of what many economists would expect to find. The research project found, for example, that there is a regressive tax structure. The distribution of income and wealth is described by the editors as...