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A Comparison of Income Inequality in China and Russia and The Impact on Human Capital

Both China and Russia in economic transition are facing the risk of widening income gap and increasing inequality. This paper analyzes the degree of income inequality between the two countries from the perspectives of Gini coefficient, income quintile and decile. The income distribution system aimed at maintaining the stability has failed to curb the expansion of income inequality. Instead, it has resulted in an unfair distribution of educational opportunities and huge differences in family education investment, which increasingly affects the quality of education, especially the acquisition of high-quality higher education resources. So income inequality has become the main obstacle to the accumulation and development of human capital. Only by controlling income inequality within a reasonable range through a more inclusive system and giving individuals fair educational opportunities can the stock and quality of human capital be improved.