to data from National Bureau of Statistics of China, at its widest disparity, city dwellers were earning 3.33 times as much as farmers (income ratio of 3.33:1), with per capita disposable income of urban households standing at RMB17175 while per capita net income of rural households at RMB5153. In contrast, the income disparity was at its narrowest in 1983, at 1.82:1, due to effects of the Household-responsibility system introduced in 1978. As of year 2010, income ratio was recorded at 3.23:1 and per capita disposable income of urban households stood at RMB19109 while rural households’ were at RMB5919. In 2014, according to an Institute of Social Science Survey, Peking University, income inequality among Chinese mainland citizens has reached severe conditions, with 1% of the Chinese population possessing 1/3 of the country's wealth. In 2012, a report published by Southwestern University of Finance and Economics estimated the Gini index of China at 0.61 China's government publishes an official yearly calculation of the country's Gini index. According to these reports, the average Gini coefficient between residents was .475 between the years of 2003 and 2018, reaching a high of 0.491 in 2008 and a low of 0.462 in 2015. Factors Urban-biased policies More than 10% of China's total inequality is attributed to the rural-urban gap, according to a study published in the PNAS. Research conducted by Dennis Tao Yang published in the journal of the American Economic Association indicates that the root of China's rural-urban divide “lies in the strategy of the centrally planned system that favored heavy-industry development and extracted agricultural surplus largely for urban capital accumulation and urban-based subsidies.” In the 1980s and 1990s, state investments in the rural economy accounted for “less than 10 percent of the budget, despite the fact that the rural population was about 73-76 percent of the national population.” Additionally, factor market distortions have created significant rural-urban inequalities. More specifically, research published in the Journal of Economic Modelling demonstrates that the Hukou system and absence of a fully functioning land market are two main drivers of rural-urban inequality. Inland-coastal inequality As is well documented in many studies, rural-urban inequality is a major contributing factor to general income inequality in China. However, “while the contribution of rural-urban inequality is much higher than that of inland-coastal inequality in terms of levels, the trend is very different. The rural-urban contribution has not changed very much over time, but