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Chinas Urban-Rural Income Gap Grows

Appeared on September 1, 2008

Xie Tian, professor of the College of Business Administration at Drexel University in Philadelphia, believes the problem lies within China’s residential registration system, where the rural population is discriminated against, “In China, one is registered as a rural or urban resident depending on where one was born. But this registration system does not allow the relocation of the work force. By discarding this system, it will naturally remove the difference between rural and urban areas. If people who makes less money in rural villages can go to the cities, this gradual process will reduce the rural-urban gap.”