Increasing Inequality in China: Further Evidence from Official Sources, 1987-2000

This paper exploits the decomposability properties of the Theil index to present new evidence on the evolution of earnings inequality in China by sector and province, for the years 1987-2000. The official data sources have rich possibilities for interpreting China's "Retreat from Equality." However careful attention must be paid to changes in category schemes and other matters that affect the interpretation of the data.