The great divide: Institutionalized inequality in market socialism

Among the assumptions that accompany the study of inequality in China is the notion that the reform process and the marketization of social relations and means of production are behind the dramatic increase in inequality in China. In this chapter, echoing Yingjie Guo in this volume, we suggest that institutional factors and the distinction between those who are within the system and those who are outside it are also still playing a role in inequality, in two main ways: rst, institutional belonging and work-unit/workplace attachment contribute to increased inequality by determining a privileged access to resources by some groups, often amplifying the effect of market transition; and second, despite the increased signi cance of individual characteristics in determining success in the labour market, institutional attachment, access and belonging to certain employment groups (for example, public employees) is still decisive for individuals’ ability to move up the social ladder.