The issue of equality has become the focus of increasing attention in both China and the west in the past several years. But the empirical basis for analyzing the extent and nature of equality in modern China remains weak, relying as it has on impressions and scattered statistics brought back by visitors. The most systematic summary of available data on one form of equality – income distribution – is Professor Martin Whyte's recent article in The China Quarterly (No. 64) entitled “Inequality and stratification in China.” Whyte's measure of inequality is the ratio of the income of the highest earner to that of the lowest. In his treatment of rural income, Whyte reports intra-team ratios for 18 communes visited by Keith Buchanan as around 3:1, a ratio of 14:1 for Liu-lin village visited by Jan Myrdal in 1962, and 3:1 or 4:1 for villages in his own interview research. On the basis of this kind of data, Whyte concludes that income inequality within China's production teams is relatively low but not outstandingly so in comparison with pre-1949 China or with other Asian countries. He suggests that the “modest” level of income inequality in rural China today may be as much the result of a relatively equal distribution before 1949 as of post-Liberation agricultural development and redistribution of the means of production.
Income inequality and price elasticity of market demand: the case of crossing Lorenz curves
