ABSTRACT
The studies of the income distribution issue in China have all focused on horizontal imbalance or horizontal inequality so far. In real life, however, the inequality of income distribution or the vertical imbalance of income distribution between people of different generations, or the inter-generational imbalance, objectively exists and urgently needs attention. If we say that the inter-generational imbalance in foreign countries is mainly manifested in the public service domain, then the inter-generational imbalance in China is manifested more extensively, which results from China’s special development background and policy background. The prominent manifestations of the vertical imbalance of income distribution include the inter-generational imbalance caused by long-term salary freezing; the inter-generational imbalance between in-service employees and retirees; the imbalance within retirees; the imbalance between retired cadres and ordinary retirees; and the intergenerational imbalance caused by the rapid change of house prices. To tackle the vertical imbalance problem of income distribution, we must strive to avoid radical changes during development using the strategic insight and tactical measures, properly handle the continuity and harmony issues during policy evolution, prevent especially the disadvantages resulting from the “rigid uniformity” of policies, and attach importance to the multi-player game among different interest groups in the decision-making process, especially respecting and safeguarding the political participation rights of the disadvantaged groups.
