A Comparative Analysis of Income Inequality and Income Polarization between Rural and Urban Areas: 1988- 2010

This paper uses the Chinese nutrition and health survey database( CHNS) 1988- 2010 microscopic survey data of household annual per capital income data to estimate the income inequality and income polarization index of China's urban and rural areas. Meanwhile,the article explains the features of income inequality and income polarization index separately between different years from another point by estimating the proportion of the population share in low,medium and high income groups over the years. The results show that the degree of income inequality and polarization within rural areas is higher than that of urban areas,aggregate income of rural income groups tend to low and high levels,while the town is gathered to middle- income levels. The phenomenon indicates that the internal distribution of urban income is more reasonable,the income gap within rural areas is to be improved and the problem of adjustment is more severe.