Research On Income Distribution Gap

In the almost four decades of reform and opening up, China's economic development has made great achievements. Reform of Economic system provides an effective system guarantee for the rapid economic growth of our country. However, the change of incentive mechanism and distribution system has resulted in the dramatic evolution of our country's residents'income distribution. Reasonable income gap between residents can mobilize the enthusiasm of the workers, and then promote the rapid development of the overall economy. A large income gap will lead to conflict between social classes and people's dissatisfaction with the government, and then cause adverse effects on social stability and harmony. With the continuous deepening of China's reform and opening up, the socialist market economic system is constantly improving. The income level of residents has been greatly improved. At the same time, the expansion of the income gap has exceeded the reasonable level. Income gap between urban and rural areas, eastern and western regions are both constantly expanding. In addition, the number of poor people in China has dropped significantly since the reform and opening up. However, to achieve accurate poverty alleviation strategy and the goal of all the rural poor people out of poverty in 2020 all need to overcome many difficulties. In order to ensure social fairness and justice and build a harmonious society, the government must explore the policy measures that can effectively reduce the income gap and poverty. It is very important to study the income distribution in our country, which is the important point to realize this goal.In this paper, the variation of the Gini coefficient is decomposed according to the grouping and sources. On the basis of this model, we use Chinese health survey data (CHNS) to investigate the effect of partial income on income inequality of Household income of urban and rural residents, personal income of residents in the eastern and western regions. Finally, this paper combines the Gini coefficient and the poverty degree, and Gini coefficient of poverty degree is defined. On the basis of the decomposition model of the change of the Gini coefficient, the influence of the sub income on the change of the poverty in China is studied through the change of the Gini coefficient of the poverty. The main conclusions of this paper are as follows:First, from the perspective of the effect of sub income on income inequality of urban and rural residents, as part of the labor income, family small business income on the income inequality of the inhibitory effect were significantly enhanced. Wage income can reduce the degree of income inequality in urban areas and also in between urban and rural areas, but it will exacerbate the income inequality in rural areas. Agricultural and livestock farming income can reduce the level of income inequality in rural areas. Non-labor income showed a significant increase in the impact of the transition to a slight expansion of the phenomenon on urban areas and also in between urban and rural areas. Therefore, non-labor income may become the main factor of income inequality between urban and rural areas in the future. The suppression effect of public transfer payment is very weak, and it is gradually weakened. The effect of pension on the urban and rural income inequality is very significant.Second, from the eastern and western residents of personal income inequality, The pension has a very significant role in reducing the income inequality of residents. But its effect is obviously difference between different regions. This is mainly manifested in:the eastern part of the income inequality is very significant, but the effect is very weak in the middle and western part. The effect of income inequality of east regions is more significant, but the adjustment effect is not significant between east regions and other Regions. The labor income has enlarged the income inequality in east regions, which has a significant impact on the income inequality between the East and the West. Labor income has an inhibitory effect on the income inequality in and between other regions. Property income is almost at the same time expanding the income inequality within and between regions. The inhibitory effect of transfer payment on income inequality is not ideal. This is mainly reflected in:transfer payments gradually began to expand the income inequality within and between regions.Third, in terms of the change of Gini coefficient of poverty degree, The inhibitory effect of public transfer payments on rural poverty has weakened significantly. Non-labor income's inhibitory effect on rural poverty is also significantly reduced. The labor income will increase the rural Gini coefficient of the poverty degree and the effect will be worse. The inhibitory effect of labor income on urban poverty degree was significantly enhanced. The effect of public transfer payment and non-labor income on urban poverty is gradually reduced. The inhibitory effect of labor income on poverty inequality between urban and rural areas has increased significantly. Non-labor income's inhibitory effect on the poverty degree between urban and rural areas is gradually wreaked. And the effect of public transfer payment on poverty inequality in urban rural areas was significantly decreased.Based on the above conclusions, in order to construct a harmonious income distribution system, we give some suggestions as follows:First, to reduce the income inequality of urban and rural residents in China, we should first improve the labor income's proportion of rural residents. In addition to raising the income level of the rural residents'income, we should also focus on supporting the development of small businesses in rural areas and promoting the development of agriculture and aquaculture. Secondly, we should improve the labor income of urban residents, improve the income of urban residents'income, focus on the development of small towns and small businesses, and promote the growth of small business income of urban households to improve the lives of ordinary people. Redistribution of non labor income is also an important focus on reducing income inequality. In addition, we should improve the efficiency of the public transfer payment, and make it more fully play its due role.Second, to reduce China's east and west residents of personal income inequality, on the one hand, should accelerate the economic development of the central and western regions, in order to provide material support to narrow the regional gap. Vigorously promote the western development strategy, accelerate technological innovation in the central and western regions, and accelerate the growth of the residents'labor income betweem mid and west aeras. On the other hand, the policy of backward poverty stricken areas is to promote regional economic growth.Through the transfer payment system to improve the financial capacity of the central and western regions, narrowing the regional financial gap is one of the priorities of the government in our country. Secondly, we should also increase the financial transfer payments, especially in the central and western regions of social security expenditure. Finally, optimize the population structure, promote the migration of the labor force to the Midwest, strengthen investment in fixed assets, etc. is also the government to improve the individual income gap between the eastern and Western residents.Third, on the impact of sub income to poverty in urban and rural areas, we should improve the efficiency of public transfer payments, and effectively implement precise poverty alleviation strategy, then make it more fully play its due role. In addition, to improve the labor income of poor people, one of the ways is to effectively improve the labor participation rate of poor people.