How Does Public Goods Affect Social Stratification And Personal Choice

Reform and development in China is not only a process of marketlization, but also a process of social transfer and social stratification. The factors which affect social stratification include income distribution from market and public goods/bads provided by governments as redistribution system.Public goods/bads are always treated as’goods’that could help poor people and narrow income gap, but this dissertation underlines the other side as’public bads’. Public goods/bads have two faces, they consolidate power system and maintain social stability, discriminate to different groups, redistribution income, shape social stratification and social order. Even public education and social security, which are always considered to help disadvantaged groups, still more biased in favor of middle and high income groups, especially peoples who work in traditional systen and live in city.This dissertation outlines mechanism of how public goods/bads affect social stratification and how social stratification affect personal choice, this is political social-economy three forming an organic whole framework. Public goods/bads as distribution and redistribution system of social identity and status from government, individuals are pursuing higher income and seeking higher social status. Discrimination of public goods could distort market mechanism, affect personal choice and social economy performance.Model in this dissertation uncover the mechanism of public goods/bads in process of social stratification and personal choice. Individuals buy education to signal their ability and hunt a good position. Relative cost of education to poor and wealth families is different. Income gap will inherited if education is two expensive. If educational privileges exist, people who enjoy the privileges will buy more education, get better position and high income. If wealth groups enjoy more privileges, educational privileges as public goods/bads will expand intergenerational income inequality, if poor groups enjoy more educational subsides, intergenerational inequality will be narrowed. If people who have high education degree could enjoy more public goods such as higher pension replacement rate and better medical insurance, parents will spend more wealth to buy education for their children, wealth groups inherit their social status to next generation. If parents could invest education or physical capital, parents will partly invest physical capital, sprit of capitalism rise, social will not involution in equilibrium of inherit aristocracy or imperial examinations elite, but evolution in capitalism path.This dissertation use China General Social Survey2008(CGSS2008) data to analysis how public education resource allocation affect decision of families for their children and social mobility. China’s education system have not improved social mobility, status in traditional system and income advantage inherited.This dissertation also use China Family Fiance Survey2012(CHFS2012) data to analysis discrimination of social security. People who have middle-high income, especially work in traditional system enjoy more and better social security, migrant workers with rural hukou lack protection.Local government prefer to supply infrastructural or public goods to immobility labors, this preference also shape social stratification. Social security system discrimination to workers with rural hukou is because local public spillover effect, local government supply public goods or open public service to migrant works will make local public goods crowd and added consume of other region. Central government supply main public goods such as pension and medical insurance for migrant works will more efficient.Public goods are necessary, but they are not reason for expand government power. This dissertation outline that public goods supply should satisfy essential demands and protect poor group. Public goods shuold universality, unity and uniformity. In welfare states, Nordic countries and Anglo-Saxon countries with Beveridge mode have less government debt than central Europe countries and Mediterranean countries with Bismarck mode, especially the Mediterranean PIGS. Welfare system with discrimination will let different groups keep up, each session of government promised to improve welfare standard for the most powerful group or class, this is why welfare is rigidity and difficulty to reform.Public goods/bads as redistribution system reduced inequality from market (by distort market mechanism) and produce new injustice, solved externalities that market failed(too more negative externalities and too less positive externalities) and supply negative/positive externalities. Government should supply public goods prudentially under institutional constraints. Public goods should universality, unity and uniformity to avoid distort market mechanism.