Transportation and income inequality in China: 1978–2007

•We study the effects of various types of transportation modes on income inequality in China between 1978 and 2007.•We consider income inequality in China nationwide, and within urban and rural areas.•Policy guidance in transportation is discussed in order to alleviate the growing socioeconomic imbalance in China.

This paper mainly studies how various types of transportation modes are associated with income inequality in China for the years between 1978 and 2007. Gini coefficients are used to measure the income inequality nationwide, and within urban and rural areas of China. Factors other than transportation are also considered in the regression model, including a few demographic variables and major economic indicators. We contribute to the literature by examining the income redistributive effects of transport infrastructure and services, and providing transport planning and policy guidance which may alter the orientation of public policy and help alleviate the growing social and economic imbalance in China.