The analysis of opportunity inequality, income-gap and public policy

Theories of income distribution have paid much attention on inequality of outcomes, The paper decompose overall income-gap by source, and brings opportunity inequity into analysis of Income disparity. Income disparity due to Inequality of opportunity is the objective of public policy, which has been emphasized by empirical study in china. The government should be clear about the Boundary of Income disparity, then establish the Framework of public policy based on the equality of opportunity.