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One Silver Lining of China's Lopsided Labor Market: Shrinking Income Inequality

In the same week that international educators are debating the comparative merits of global school systems—and whether China’s PISA scores are overhyped—a new report from China Economic Quarterly sheds light on an unintended consequence of China’s recent push to expand higher education.

The annual supply of fresh college graduates far exceeds the number of white-collar positions available in China. Meanwhile a dwindling pool of young people willing to work in Chinese factories has driven up assembly-line wages. The result, conclude GK Dragonomics analysts Andrew Batson and Thomas Gatley, is an unexpected narrowing of China’s worryingly high level of income inequality.