ABSTRACT

This chapter focuses on some special phenomena in resident income distribution during the economic system transformation in China. Personal income distribution in China was highly equalized, or equalitarianism was prominent, before the reform, which is generally noted. The income distribution gap in the planned system or within the range of the State’s direct control is larger than that in the unplanned system. The chapter shows that the aforementioned phenomena in the income distribution in China are different from equalitarianism, a typical phenomenon in the traditional socialist economic system. The coexistence of new equalitarianism, old equalitarianism, and overhigh income of a small number of people and economic activities, is a special phenomenon that emerges in China’s economic system reform. The income of urban employees has increased significantly since the reform, especially since the reform focus shifted to cities.