In the case of the PRC, within-group inequality declines monotonically with
urbanization because urban inequality is lower than rural inequality and shifting
population from the rural to urban sectors will always reduce within-group
inequality. Like the other three countries, the PRC’s between-group inequality also
increases with urbanization when the level of urbanization is low and decreases
with urbanizationwhen the level is high, with the turning point occurring at around
43%. The turning point for national inequality occurs at around 36%, much earlier
than the other three countries. With the actual level of urbanization at 52% in
2012, the PRC has already passed this turning point.