Since inequality differs cross population groups，changing population age structure may
have an effect on overall income inequality．This paper develops an analytical ( statistical) model to describe conditions under which population ageing could aggravate income inequality，and show theoretically and empirically that the conditions are true in China．Thus，it is hypothesized that population ageing aggravates inequality in China．With Gini coefficient as measurement of income inequality，and employing provincial level panel data over 1996 － 2009，this paper confirms that population ageing ( i．e．an increasing aged dependency ratio and a decreasing child dependency ratio) is a positive and significant factor contributing to income inequality．This suggests that inequality studies need to incorporate
population ageing，as it conveys different policy implications as compared to other factors．