%0 Report %A Gustafsson, Björn Anders %A Li, Shi %A Nivorozhkina, Ludmila %T Why Are Household Incomes More Unequally Distributed in China than in Russia? %D 2010 %8 2010 Dec %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 5383 %U https://www.iza.org/publications/dp5383 %X Harmonised microdata show a Gini coefficient for per capita total income of 45.3 percent in China 2002 and 33.6 percent in Russia 2003. A much larger urban to rural income gap in combination with a much smaller proportion of people living in urban areas in China are important reasons for this cross-country difference in inequality. Wage is a more non-equalising income source in China than in Russia. While Russian public transfers reduce income inequality, Chinese public transfers increase income inequality. Cross-country differences in the process of transition are also found to be significant. A relatively large non-agriculture self-employment sector is non-equalising in rural China, but is also narrowing the urban to rural income gap. In contrast to the many cross-country differences revealed, we report income inequality among urban residents in China and in urban Russia to be very similar. %K inequality %K China %K public transfers %K income distribution %K Russia