Using newly available spatial price deflators, this paper shows that inequality evaluations in the literatureoverstate the magnitude of inequality and inequality changes in China, as well as the role played by regional differences in the recent inequality rise.

Using newly available spatial price deflators, this paper shows that inequality evaluations in the literature overstate the magnitude of inequality and inequality changes in China, as well as the role played by regional differences in the observed inequality rise duringthe 1990s.