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  • Essay / Income inequality in China: causes and prevalence

    China has undergone extensive economic reforms since 1978 and have been accompanied by indisputable income inequality. Economic growth supported by widespread industrialization has significantly reduced China's poverty level. However, income inequality has been on a rapid upward trend, surpassing levels recorded in any other country in the world over the past decade. While China is experiencing a great economic boom due to industrialization, income inequality remains widespread across different social and economic strata. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay Income inequality in China borders on collective bodies such as families, kinship lines, hukou (registration of households), villages and geographic locations, among others. A 2013 study by Gong and Li claims that income inequality is linked to geographic location. According to Gong and Li, income differences between rural and urban areas and between provinces account for about two-thirds of income inequality in China. The trend dates back to the 1980s, when rural households consistently earned lower incomes than their urban counterparts. Furthermore, Gong and Li indicate that income growth in rural areas is dismal. Deductively, greater income inequality is found at the meso-collective level rather than at the individual level. Propaganda extended by the state champion of inequalities as an opportunity cost necessary for economic development. According to Xie, the state makes it clear to the people that inequalities between the rich and the poor are inevitable costs that the people must bear for the country to achieve the desired economic growth. Thus, the economic prosperity advocated by the government for the people has intentionally left aside a part of the Chinese people for the greater good of the country. Third, conventional Chinese political credo sanctions inequality based on merit. The government grants a host of benefits and privileges to Chinese leaders who demonstrate high performance in improving the public good. Chinese meritocratic conventions approve and deem disparate treatment desirable. Such cases may be linked to what Trivedi calls sea turtles – Chinese people living abroad. Returned professionals are eligible for Beijing's Thousand Talents program, which rewards them with 500,000 yuan and a 2 million yuan interim research grant, among other benefits. Thus, China's appetite for advanced delivery of quality public services and the search for talent continues to widen the already wide income gap. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get Custom Essay Acquisition of tertiary level education is a big determinant of income distribution. In China, rapid technological advancements have led to a skyrocketing demand for highly skilled workers. In 2017, Chinese universities produced around 8 million graduates, twice the number of graduates in the United States. Unfortunately, a wider gap in higher education completion was observed between the rich and the poor and between urban and rural areas. For example, only 19 percent of these graduates were from Guangxi, a rural area of ​​China, compared to 70 percent of those from Shanghai. For most countries, inequality.. 327-347.