China's income gap to further widen in next five years

17:06, September 13, 2010      

Email | Print | Subscribe | Comments | Forum 

China's residential income gap will further widen in the coming five years, said Fan Gang, director of the National Economic Research Institute (NERI), on Sept. 10.

"The trend of the widening income gap will last for the long term and will not improve over the next five to 10 years," he said.

Fan said the widening income gap in China can be attributed to three reasons: the social system, the problems of social development and a lack of public policies.

At present, more than 30 percent of the labor force works in agriculture compared with the 2 percent in the United States and 6 percent in South Korea. Another 30 percent of the labor force is rural migrant workers who work in the industrial and service sectors earning only 1,500 U.S. dollars a year on average. These rural migrant workers, despite earning such a low salary, still earn much more than the labor force in the countryside.

Fan explained that fierce competition dragged down wages from non-agricultural jobs, and in the past 15 years, the productivity of non-agricultural labor force grew at a rate of 10 percent to 12 percent a year, compared with the 4 percent to 6 percent yearly growth in rural migrant workers' wages. As a result, the income gap between the low-end labor force and professionals and experts further widened.

By People's Daily Online


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
  • The romantic myth of the Aegean 
The Aegean Sea is between the Greece Peninsula and Asia Minor Peninsula, dotted with many beautiful scenery islands, like a paradise on earth.  The ancient city of Troy in the east coast of Aegean, Turkey, and Mycenaean sites in the west bank of Greece, which have been archaeological discoveries, now are the must visit places in journey of the Aegean Sea. Above, these desolate dilapidated stone, the sunny blue sky and white clouds and vessels roaming at sea, arriving and departing travellers, add more romantic to the sea and the islands.
  • Chinese Permanent Representative to the United Nations Li Baodong (R) welcomes UN Secretary-General Ban Ki-moon in New York, the United States. Sept. 29, 2011. The Chinese permanent delegation to the UN held a reception on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China and the 40th anniversary of China's returning to the UN. (Xinhua/Shen Hong)
  • Chinese ambassador to Bulgaria Guo Yezhou delivers a speech during the reception in Sofia, capital of Bulgaria, on Sept. 29, 2011. The Chinese Embassy in Bulgaria held a grand reception here on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China. (Xinhua/Wang Meng)
  • A model presents creation by Mexican designer at Mexico Fashion Week, Mexico City, Sept. 29, 2011. (Xinhua/AFP Photo)
  • Tourists walk in front of the Reichstag building in Berlin, capital of Germany, Sept. 29, 2011. Fine weather on Thursday added to the mood of outdoor leisure for residents and tourists in Berlin. (Xinhua/Ma Ning)
Hot Forum Discussion