ABSTRACT
China has been experiencing unprecedented growth over the past 30 years, with a commensurate increase in average living standards. However, the strategy of “Let some people get rich first” has resulted in a huge income gap between urban and rural, east and west, coastal and inland China. There are mounting concerns that the growing inequality hinders sharing of the fruits of economic development. In addition, social unrest that accompanies worsening inequality may slow down economic transition and hinder future growth.
