A Theil's Entropy Measure Applied to Calculating Income Disparity in China Urban Residents Since Mid-1980s

摘要

After we have been reforming and opening up to the outside since 1985, Chinese urban residents' income disparities have had obvious changes. Previous researches focused on Gini coefficient analysis, but the problem is that it is only sensitive to medium income groups. It is necessary to use Theil's entropy measure which is the general international method of calculating the income of higher and lower income classes to analyze the changing rule of income disparities and provide basis for our country's in making policies to adjust the income disparities.