The evolutionof China's national income distribution

PENG Shuang1 (彭爽) and YE Xiaodong2 (叶晓东)
1School of Economics and Management, Wuhan University
2Department of Social Sciences, Hubei Institute of Economics

Editorial Note:Since 1978, great transformation has taken place in China’s economy and in the distribution of its national income. Income distribution is pertinent to people’s immediate interests, to enterprises and to government agencies, and hinges upon development efficiency, social equality and the creation of a harmonious society. Considering this, this paper presents an analysis of the patterns of primary and secondary distribution of China’s national income and the evolution of the internal income distribution patterns of various economic entities since 1978, offering subsequent recommendations on policy adjustment.

The pattern of national income distribution refers to how incomes are distributed among different sectors. A reasonable allocation of national income is a prerequisite to the optimal allocation of production factors, balanced efficiency and equality, and social stability and economic development. This paper presents an overview of the evolution of China’s national income distribution since 1978, assesses the present income distribution pattern, and puts forward policy recommendations.