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Since 1980, Chinese leaders have moved decisively away from the egalitarian rhetoric of the Cultural Revolution.' In the past two or three years, commentators have even argued that it is necessary to tolerate increased income inequalities on the grounds that such economic differentiation contributes to rapid overall growth, offering appropriate rewards to the most productive and stimulating the ambition and drive of those who currently lag behind (Lu Baifu, 1983; Wang Dacheng, 1983; Decision of the Central Committee, 1984). Detailed documentation of the magnitude or character of the emerging inequalities is as yet absent; references to the issue are hidden within reports of meteoric
Deborah Davis-Friedmann (Mon,) studied this question.