MARKET TRANSITION AND THE PERSISTENCE OF POWER - THE CHANGING STRATIFICATION SYSTEM IN URBAN CHINA

Research on transitional socialist societies has explored trends in in come inequality and issues concerning who gains and who loses during m arket reforms. We find that income inequality in a major Chinese city declined only slightly during the first decade of reform policies; it then increased dramatically in the subsequent five years. Strategic po sition in the stare bureaucracy continues to be an important determina nt of income, although connections to the market system are becoming a lternate sources of advantage. We interpret these findings in light of the historical and institutional context of urban China.