Analysis Of The Influencing Factors Of Wealth GAP Of China Based On Structural Equation Model

With the reforming and opening up,the implementation of policies such as get rich first and get rich later,China?s comprehensive national strength has been continuously enhanced,and the overall living standards of residents have been continuously improved,but the gap between rich and poor of China still exists.According to the data released by the State Statistical Bureau,the Gini coefficient of Chinese residents' income in 2003 was 0.479,and increased to 0.491 in 2008.After 2009 the Gini coefficient began to fall,until 2018 it fell back to 0.474.Although the gap between the rich and the poor has declined,it still exceeds the international "red line" 0.4,and the wealth gap in China is still very serious.At the same time,2020 is a decisive time in finishing the building of a moderately prosperous society in all respects.The Two Centenary Goals proposed in the report at the 15 th NCCPC has also become the goal of the common struggle of the people of all ethnic groups in the country.Sharing the fruits of social development among the whole people has become one of the important issues in the work of the government.China as a most populous country,it is not easy to balance the distribution of social wealth,and the long-term high level of the wealth disparity is not conducive to the long-term stable development of society.Therefore,it is of great practical significance to narrow the gap between the rich and the poor and build a common pattern of prosperity in our country by exploring the main and secondary factors of the wealth gap and analyzing its influence mechanism.Firstly,we summarize the main forms of regional gap and urban-rural gap in China through macro-data which from the National Statistical Yearbook,with a view to having a preliminary understanding of the gap between the rich and the poor.Secondly,the National Household Income Gini coefficient was calculated by using the household income data from Chinese General Social Survey in 2015.Because the regional gap and the urban-rural gap are the two main forms of the wealth gap in our country,the Gini coefficient in the east region,central region,western region and northeast region are further calculated,as well as urban and rural Gini index.Finally,the analysis of influencing factors is carried out by modeling a Structural Equation Model.By reviewing the literatures and combining with the data,37 indicators in six aspects of Economic level,Education level,Employment status,Social security,Information media and Government work were selected as the specific observation variables.These six variables are used as exogenous latent variable and the Gini coefficient as an endogenous observation variable;it?s also as an endogenous latent variable.In the process of empirical analysis,first of all,using the all data of the country to do the influence factors analysis,and secondly,the data are divided into different regions and urban-rural and then to do the model fit respectively.Finally,we can get the main factors and secondary factors of the wealth disparity.Through the study,the main conclusions are as follows:First,China's income Gini coefficient reached 0.59,the wealth gap is very serious.The gap between the rich and the poor is mainly reflected in the regional gap and the urban-rural gap.The wealth disparity in the western region is the largest,the gap in rural areas is more serious than in urban areas,and the gap between urban and rural areas is the cause of the gap between the rich and the poor.Second,education level,social security and information media are the main factors in narrowing the gap between the rich and the poor throughout the country,but the improvement of the economic level will widen the gap between the rich and the poor to a certain extent.Third,education level and social security are the main factors in narrowing the region wealth gap.The employment situation and the use of information media play a key role in narrowing the gap of the central region,western region and northeastern region.The level of public service of the government can effectively narrow the wealth disparity in the northeast.Fourth,the key factor to narrow the wealth gap in urban and rural areas is to improve the level of education in urban and rural areas.The improvement of the level of government public services can also narrow the wealth gap,but the extent of the reduction is limited.Economic development has a positive impact on narrowing the wealth gap in rural areas,but has a negative impact on urban areas.The social security has a very limited role in narrowing the gap between rich and poor.Fifth,education is the key factor to narrow the gap between the rich and the poor to the whole nation,Eastern Region,Central Region,Western Region,Northeastern China,urban and rural.The inadequacy of education is the main reason that leads to the widening of the wealth disparity year by year.