TY - RPRT AU - Gustafsson, Björn Anders AU - Li, Shi AU - Nivorozhkina, Ludmila TI - Why Are Household Incomes More Unequally Distributed in China than in Russia? PY - 2010/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 5383 UR - https://www.iza.org/publications/dp5383 AB - 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. KW - inequality KW - China KW - public transfers KW - income distribution KW - Russia ER -