A Study Of Income Inequality Comparison Between China And India

At present, the economy is rapidly growing in China and India, economic reform and opening to the outside world have made tremendous achievements. As the two most populous countries in the world, they are the leaders in developing countries, and they can develop so quickly because they implemented the reform and opening up. Now, their names are in the" BRIC" list. Because of the two countries achievement, Asia becomes more and more famous in the world, and China and India catch the world’s attention. But behind the brilliant achievements, the two countries also have many problems, one of them is the income gap of residents is expending.In previous studies, many scholars compared the two countries from many angles, for example the economic transition, development model, development of the service industry, opening up the outside world and so on. This article will compare the income inequality in the two countries. The article is divided into four parts. In the first part, we will compare the urban-rural income inequality, describe the status of the urban-rural income inequality. We will compare the two countries rural income inequality and the city income inequality in detail, focusing on the causes of the rural income gap. In the second part, we will research the trend of income gap in different regions of China. We will analyze regional income gap in India in the base of different classification. At last, we found the regional income gap in India demonstrated in the gap between the north and the south and different education levels. In this part, we also found that the income gap between different industries is very large. The third part is the two countries overall income inequality causes analysis. Using decomposition technology based on regression equation, we found the institutional reasons affecting income gap. So that we can provide policy recommendations to narrow the income gap. The last part, we summarize the conclusion after compared the income inequality between China and India, and point what is worth China learning and referring. We put forward policy recommendations to prevent Chinese income gap expands further.