What is the real income of a Chinese household? There seems never a clear answer. The National Bureau of Statistics does release the estimate of Chinese household’s income on a national level. However, the figure looks unrealistically low. For example, according to the official figure in 2008, the mean income of China’s top 10% household is only at a mere 40,000 RMB per annuam (equivalent to slightly less than USD 6,000 per year). A largely quoted reason for the ambiguity of Chinese household’s income is that a lot of households have grey income which is very difficult to identify and therefore recorded by the government. To address such issue, Professor Wang Xiaolu of China Reform Foundation conducted a study to explore the grey income of China’s households. According to Professor Wang’s study, there is an average premium of 90% grey income to China’s households on a national basis. In other words, on average China’s households earn almost double what the official statistics suggests (and therefore pay half the tax). In a more detailed analysis, Prof Wang reveals that the grey income premium is the most among top 10% household incomers, amounting to an astonishing 220%. In other words, for most of China’s top 10% household, a large bulk of their income is other than salary or reported earning.
中国家庭的收入到底有多少?这是一个很难讲的清除的问题。即使政府每年都有官方数据,但是几乎没有人相信官方数据的可靠性。主要原因是大部分家庭都有这样或者那样的灰色收入。为了探清这个问题,王晓路教授遍访全国收集了第一手资料来求解这个问题的答案。根据王教授的研究,中国家庭平均的灰色收入占到家庭总收入的接近一半。而这样的灰色收入在高收入家庭中尤其明显。对于中国最富有的10%的家庭来说,其灰色收入竟然占到了总收入的2/3强。
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Secret for China's Growth (中国经济增长原因探讨)
China's Environmental Crisis (中国的环境威胁)
Mr China – A memoir (中国先生)
The Chinese Century (中国世纪)
Who will Feed China: Wake Up Call for a Small Planet (谁来养活中国)
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WCM
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#1 by Craig on August 2, 2010 - 12:36 PM
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How does this impact our understanding of consumer savings? The last statistic I heard was that Chinese consumers save an average of 37% of their income. Does this mean they’re not saving as much as was thought, or that savings is equally larger than reported? Seems like a pretty significant insight on consumer behavior, in my mind. Not to mention the impact that has on our understanding of China’s (now “alleged”) domestic under-consumption.
#2 by Wushu on August 2, 2010 - 1:28 PM
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my suspicion is that the consumption has been under-estimated due to the grey income portion. The saving rate is actually around 50% (see graph on Chinatells: http://blog.chinatells.com/2009/12/3714, which could be over-estimated.
#3 by personal fitness on December 21, 2010 - 10:48 AM
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nice post. thanks.
#4 by sales tips on December 27, 2010 - 6:57 PM
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I love this post – totally kewl!!! Well done! I’m coming back to this one …
#5 by s corporations on January 6, 2011 - 5:45 PM
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Thank you, I have recently been searching for information about this topic for ages and yours is the best I have discovered so far.
#6 by Dalton Sayler on January 13, 2012 - 4:17 PM
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Very good article.Much thanks again. Fantastic.