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China's income inequality slowly improving, survey finds

New survey claims key measure of income gap has slightly improved, but earlier studies suggest the problem could be getting worse

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China's income inequality slowly improving, survey finds

Wealth inequality in China is still high compared with most developed countries but the gap is slowly narrowing, a new survey has found.

China's Gini coefficient of income inequality was 0.49 last year, slightly down from 0.51 in 2010, according to the China Development Report on People's Livelihood 2013 based on the China Family Panel Studies.

This is a research project of the Institute of Social Science Survey at Peking University.

The study's researchers interviewed 14,960 households representing 57,155 people.

The Gini coefficient is a measure of income inequality. A figure of 0 represents perfect equality and 1, perfect inequality. A reading above 0.4 is seen as a warning sign of inequality.

"Two reasons contribute to China's improving Gini index," Ren Qiang, an author of the report, said. "One is the faster increase in household income in rural areas compared with the cities, and the second is the faster income rise of the middle class.

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