This paper addresses three issues that are central to understanding the effects of the transition in China from central planning to a more market-oriented economic system. First, what have been the consequences of The economic reforms for the distribution Of income in urban areas? Second, what has Happened to the incidence of urban poverty? Third, have government policies helped ot Diminish or accentuate urban poverty and in- Equality? Answers to these questions are Based on a comparison of tow national sam- Ple surveys conducted in 1988 and 1995.
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