Before the economic reforms, the main problem in the distribution of income in China had been egalitarianism. The economic reforms are aimed at widening the gap between individual incomes in order to raise efficiency and achieve the aim of the common prosperity of all members of the society. This is the same as the result of Kuznet′s research. Before the reforms, China practised a policy of freezing wages and prices for a long period, leading to a situation unfavourable to the young generation in the distribution of income. The situation is undergoing a change in the economic reforms. China mainly adopted the non‐market method in the distribution of consumer goods before the economic reforms, which call for wider use of the market method.
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