Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 / Thomas Piketty, Li Yang, Gabriel Zucman.

Format:

Book

Author/Creator:

Piketty, Thomas, 1971-

Contributor:

National Bureau of Economic Research.

Yang, Li.

Zucman, Gabriel.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23368.

NBER working paper series no. w23368

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

This paper combines national accounts, survey, wealth and fiscal data (including recently released tax data on high-income taxpayers) in order to provide consistent series on the accumulation and distribution of income and wealth in China over the 1978-2015 period. We find that the aggregate national wealth-income ratio has increased from 350% in 1978 to 700% in 2015. This can be accounted for by a combination of high saving and investment rates and a gradual rise in relative asset prices, reflecting changes in the legal system of property. The share of public property in national wealth has declined from about 70% in 1978 to 30% in 2015, which is still a lot higher than in rich countries (close to 0% or negative). Next, we provide sharp upward revision of official inequality estimates. The top 10% income share rose from 27% to 41% of national income between 1978 and 2015, while the bottom 50% share dropped from 27% to 15%. China's inequality levels used to be close to Nordic countries and are now approaching U.S. levels.

Notes:

Print version record

April 2017.