PUBLICATIONS & REPORTS

Contents Introduction

Although income disparity in China is a longstanding and frequently studied problem, scholars only recently have begun to examine income disparity among China’s smaller geographic regions, notably cities or prefectures. This study extends scholarly thread using data from the China City Statistical Yearbook. Income disparity among cities is analyzed using a statistical indicator, followed by a decomposition analysis that divides Chinese cities into eastern and western regions. Then a simulation analysis of the change in income disparity created by city growth is conducted using a simple urban growth model. Data show that during the period 1994–2008 urban income disparity expanded, as did provincial income disparity. Growing income disparity between eastern and western Chinese cities is an important factor in the expansion of disparity. Our simulation shows that income disparity is reduced by enhancing the mobility of labor and capital.