ABSTRACT
Since the start of economic reforms in the late 1970s, China has achieved remarkable success in its economic development. However, these achievements have not come without costs. One of the most serious consequences is rising inequality. Presently China’s income inequality within communities, between urban and rural areas as well as among regions, has rapidly widened. Rising inequality has become one of the most pressing social issues and has drawn wide attention (Gustafsson and Shi, 2002; Kanbur and Zhang, 2005; Xing et al., 2009).
