Thursday, February 04, 2010

China's inequality

After carping about China's Gini coefficient for ages, it's interesting to see that it is finally leveling off, if the OECD can be believed. According to the organization's recent survey, China even fell slightly from 41 to 40.8 between 2005 and 2007. I don't like the Kuznets Curve on ideological grounds and because, while it only seems to have held true in some cases, it has been used as almost a prescription for developing countries: become more equal, let a few get rich first, and things will settle out later. But it might be true for China.

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