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Writing a Senior Honors Thesis: Trends in Income Distribution in China and Implications on Migrant Workers

China's income distribution has experienced tremendous changes since the economic reform. Labor economists have reached a consensus that the income inequality has spiked in the decade from 1980s to 1990s while there has been some debate for the following decade in its income distribution trend. Along with the economic reform, the unparalleled enormous internal migration population has become an essential composition in the labor force and been driving the directions in policy making. This paper studies the changes in dispersion of urban income distribution using data from Chinese Household Income Project through density decomposition methodology and its implications on migrant worker through theoretical framework, aiming to provide a fresh perspective on this issue.