More than 60 percent of families in cities in Sichuan Province are moderately well-off - a standard of living known as xiaokang - but more should be done to help those on lower incomes, a survey by the National Bureau of Statistics (NBS) showed over the weekend.

The survey recorded the per capita annual disposable incomes of 24,000 city-based households.

Of those, 61.7 percent were found to have incomes of between 15,000 yuan ($2,000) and 60,000 yuan, which the surveyors said had attained the xiaokang standard.

The cities' poorest families - those with annual disposable per capita incomes of less than 3,000 yuan - accounted for 4.8 percent of those polled, while 30.1 percent of households had incomes of between 3,000 yuan and 15,000 yuan.

Just 3.4 percent of the families were classified as rich, with disposable incomes of more than 60,000 yuan.

The researchers found that education was a key factor in determining income levels.

Members of households defined as living in extreme poverty were found to have attended school for an average of just 7.7 years, with most of them now unemployed or blue-collar workers.

Similarly, the majority of members of families found to be slightly better off were also mostly employed as blue-collar workers and had attended school for an average of 8.8 years.

The survey found that both groups relied on wages as their sole source of income.

Members of xiaokang households were found to have had an average of 11.2 years' schooling, while for rich families the average was 13.8 years.

Rich families were found to own large homes, have at least one car per household and in some cases derived additional income from properties they owned and rented out.

"Although 60 percent of the households have reached the standard of xiaokang, half of them do not progress beyond the initial stages," the survey said, concluding that a large and well-formed middle class in Sichuan was still some way off.

"There are great gaps among the four groups in terms of income sources, household income, expenditure and property.

"More attention should be paid to the widening income gap in order to establish a harmonious society," the report said.

The report said that both lower and middle-income households spend about 58 percent of their income on food and clothing.

It attributed their similar consumption patterns to a lack of job stability, an incomplete social welfare system and savings for education, medical treatment and housing.

(China Daily December 18, 2007)