In China, “gray income” – which by definition can’t be found in national statistics – mostly reflects practices related to bribery and abuse of power. A recent study shows its scope: it allegedly amounts to 53 percent of the income of the 10 percent of wealthiest urban families – further increasing social inequalities and showing that the real level of the Gini coefficient is much higher and much more troubling than official figures. (Ref. 130634)
While the phenomenon of illegal labor is well known and has been analyzed in western societies, that of “gray income” is barely identified. In China however, it is a recurring social concern. ‘Gray income’ means the part of income liberal workers hide from the tax authorities as well – and mostly – as percentages and bribes sometimes almost officially received by all those who have power – physicians, teachers, Party executives – and all advantages in kind (housing, cars, welfare…) for the hi
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