Normal estimation of income distribution of China’s urban and rural households

The distribution of China’s urban and rural households’ income is bell-shaped. As the estimation results show, the distributions of both urban and rural household income are normal, with the expected value equal to the median income of the income group of the greatest population density. As average income increases, the variance of income distribution also increases and the distribution curve tends to flatten out. In recent years, the steady narrowing of the income gap between urban and rural households has restrained the expansion of income inequality. At the same time, the distribution of cross-year average income is also subject to the normal distribution, with the expected value equal to the median income of the income category of the greatest population density.