Economic Growth alone Cannot Solve Income Gap Widening

LIN Jinzhong1( 林金忠 ) and WANG Ying2 ( 王 莹)
1,2 The Economic Research Institute, Xiamen University

Editorial note:

Economy at the present stage, as indicated by all the various methods of income gap measurement. Based on such a judgment, the authors offer an explanation of the income gap between urban and rural areas, across localities, and among industries in the midst of economic transition. The authors pinpoint the “six institutional loopholes” that have affected overall income disparity since reform and opening to the outside world. In addition, the authors raise concern over the “Matthew effects” and make an analysis of the two schools of thought on income regulating policies.

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