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Distribution of National Income: Difficulties and Solutions
By Yu Bin and Chen Changsheng 2012-08-27
ISBN:9787802347014
Publisher:China Development Press
Issued:August 2011
The authors use various charts and data to analyze four major problems in the field of current income distribution.
First, the income of the country's workforce and resident income account for a low proportion of the GDP, and the ratio is continuing to decline. Second, the income gap between the urban and rural areas, regions and different industries is widening. Third, the income distribution is perceived as unfair, leading to speculation and corruption, as well as grey and illegal income. Forth, "hidden rules" have – to a certain extent - replaced "formal rules", which raises social transaction costs.
The authors suggest that the country should aim to improve its market economic system and speed up the transformation of government functions.
