Shadow incomes soar without accountability

10:18, August 26, 2010      

Email | Print | Subscribe | Comments | Forum 

By Liang Fei

Under-the-table income in China has been estimated to have reached 5.4 trillion yuan ($794.16 billion) in 2008, ac-counting for about 15 percent of the country's gross domestic product, according to research conducted by the National Economic Research Institute of China Reform Foundation.

"Shadow income" comes in two varieties: personal income that is neither clearly legal nor illegal, and also illegal kickbacks for which no concrete evidence can be found to prove criminality.

The institute stated that the top 10 percent of China's households earn 139,000 yuan ($20,446.9) a year; more than triple the official figures. And the bottom 10 percent earn 5,350 yuan ($786.99) annually, 13 percent more than what is actually being reported.

Needless to say, officials at the National Bureau of Statistics (NBS) was not pleased with Wang's findings.

Two articles were posted on their official website in the past two days arguing that shadow incomes have been overestimated due to flaws in Wang's research methodology.

One article said that the sample cannot fully represent the real income picture of Chinese citizens, since the surveyed families were mainly in the high income bracket.

Wang Wednesday told the Global Times, however, that the article mischaracterized his sample and that it indeed is representative. It is not possible that the shadow income is overestimated, he said. "Based on what we found during the research, it is only possible that the number is underestimated."

In China, people usually feel reluctant to reveal their real income, one article even admitted in the midst of a rebuttal against Wang's research.

"This is the main reason for the large amount of untracked income," the article said.

Source: Global Times

(Editor:祁澍文)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Players of Iran throw up their coach Velasco Julio during the awarding ceremony at the 16th Asian Men's Volleyball Championship in Tehran, capital of Iran, Sept. 29, 2011. Iran won the champion after beating China 3-1 in the final on Thursday. (Xinhua/Ahmad Halabisaz)
  • Greek artists burn copies of emergency tax notices during a protest against austerity measures in Athens, Greece, on Sept. 29, 2011. The Greek government is facing a new wave of protests as it introduces new austerity measures to obtain the sixth tranche of aids necessary to overcome the acute debt crisis.(Xinhua/Marios Lolos)
  • A winner of the 36th Miss Bikini International 2011 poses for a photo at the Olympic Sailing Center in Qingdao, a coastal city of east China's Shandong Province, Sept. 29, 2011. (Xinhua/Chen Jianli)
  • Staff members are in position at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Rao Aimin)
  • Champion of Miss Bikini from Poland receives trophy at the final of the 36th Miss Bikini International World Competition in Qingdao, east China's Shandong Province, Sept. 28, 2011. (Xinhua Photo)
  • Photo taken on Sept. 28, 2011 shows autumn scenery of populus euphratica forests in Ejina Banner, north China's Inner Mongolia. The populus euphratica forests here, with an area of 390,000 mu, or 26,000 hectares, is one of the world's most famous populus euphratica forests. The golden leaves and sunshines here in autumn is able to attract more than 100,000 person-times annually. (Xinhua/Zhao Tingting)
Hot Forum Discussion