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NDRC Sees Widening Income Gap
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Salaries have grown steadily in China over the past 15 years, but the income gap has grown along with them, according to a report by the National Development and Reform Commission.

Urbanites earn three times as much as rural dwellers on average, according to the report. In 2005 the top 10 percent of city earners earned nine times as much as the poorest 10 percent and in rural areas the gap extended to a factor of 7.

Income disparity is both sector- and rank-sensitive, the report notes.

Between 1990 and 2005, salaries rose faster in state-owned enterprises and institutions than in other organizations.

The report shone some light on specific industries. People employed in banks, insurance companies, post, telecoms and power businesses did better overall than workers in the mining, construction, forestry, animal husbandry and fishery sectors, while also highlighting the obvious in that managers did better than workers.

According to Su Hainan, head of the China Labor Society's salary department, the monopoly status of some state-owned businesses made it easier for them to grant pay rises.

Su Hainan said that as the migrant worker phenomenon amplifies, salaries and wages will become a more important part of rural income, up from 45 percent in 1990 to 63 percent in 2005.

In cities salaries represent about three quarters of residents' income, with other sources of revenue including rental and investment income and earnings from patents.

The report also announced that government efforts to narrow the income gap had so far had little effect.

(Xinhua News Agency February 2, 2007)

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