Composition Component or Conditional Component? A New Explanation on the Change of the Income Gap among Chinese Residents from the Perspective of Counterfactual

The income gap among residents is one of the important factors that restrict development economy and society. emphasis this study lies in investigating reasons for change Chinese residents. Gini coefficient, a set generalized entropy index relative polarization are obtained on data CFPS. results show China has been increasing year by since 2012. Different from some ideas components main affecting gap, decomposition conditional make significant variation gap. This provides new perspective to explain causes changes. It may be necessary increase low-income groups improve their status with dynamic assistance stages categories.