Income Inequality In China Gini Coefficient

This statistic shows the inequality of income distribution in china from 2009 to 2019 based on the gini index.

Income inequality in china gini coefficient. It shows that the gini coefficient a widely used measure of income inequality has risen by 15 points since 1990 to 50 a reading of zero would indicate that everyone has the same income while a reading of 100 would mean that the richest person gets all the income. China s current mainly market economy features a high degree of income inequality according to the asian development bank institute before china implemented reform and open door policies in 1978 its income distribution pattern was characterized as egalitarianism in all aspects at this time the gini coefficient for rural urban inequality was only 0 16. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Income gini coefficient.

A higher gini coefficient means greater inequality. The gini coefficient and other standard inequality indices reduce to a common form. Despite these policies income inequality in china has in recent years remained stubbornly high. The gini coefficient was developed by italian statistician corrado gini in 1912 and is the most commonly used measurement of wealth or income inequality.

That is a big change even though some increase in inequality could have been expected as the level of development improved. For more information and methodology please see povcalnet. The gini coefficient ranges from 0 0 to 1 100 with 0 representing perfect equality and 1 representing perfect inequality. As shown in figure 1 china s gini coefficient a measure of inequality ranging from zero which represents perfect equality to one perfect inequality rose from about 0 3 in the early 1980s to more than 0 45 in the early 2000s.

Gini index world bank estimate world bank development research group. World development indicators 2013 washington d c. In 2019 china reached a score of 46 5 0 465 points. Measures of inequality then are.

Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution. Sonali jain chandra published a striking chart on income inequality in china on the imf blog which is based on a recently issued working paper it shows that the gini coefficient has risen by 15 points since 1990 to 50. A value of 0 represents absolute equality a value of 100 absolute inequality. The chart of the week tells the story.