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Journal of Applied Mathematics
Volume 2015, Article ID 939020, 16 pages
http://dx.doi.org/10.1155/2015/939020
Research Article

Chinese Gini Coefficient from 2005 to 2012, Based on 20 Grouped Income Data Sets of Urban and Rural Residents

1School of Public Finance and Taxation, Collaborative Innovation Center for Financial Security, Southwestern University of Finance and Economics, Chengdu 611130, China
2School of Economics, Renmin University of China, Beijing 100086, China
3University of Edinburgh Business School, University of Edinburgh, Edinburgh EH8 9JS, UK
4School of Economics and Mathematics, Southwestern University of Finance and Economics, Chengdu 611130, China
5School of Insurance, Southwestern University of Finance and Economics, Chengdu 611130, China
6Anhui University of Finance and Economics, Bengbu 233030, China

Received 9 November 2014; Revised 26 January 2015; Accepted 26 January 2015

Academic Editor: Jinyun Yuan

Copyright © 2015 Jiandong Chen et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Data insufficiency has become the primary factor affecting research on income disparity in China. To resolve this issue, this paper explores Chinese income distribution and income inequality using distribution functions. First, it examines 20 sets of grouped data on family income between 2005 and 2012 by the China Yearbook of Household Surveys, 2013, and compares the fitting effects of eight distribution functions. The results show that the generalized beta distribution of the second kind has a high fitting to the income distribution of urban and rural residents in China. Next, these results are used to calculate the Chinese Gini ratio, which is then compared with the findings of relevant studies. Finally, this paper discusses the influence of urbanization on income inequality in China and suggests that accelerating urbanization can play an important role in narrowing the income gap of Chinese residents.