Research On Fiscal Decentralization, Social Security And Income Distribution

Income distribution has always been an important factor affecting the national economy and the people's livelihood,as well as the overall situation of reform,development and stability.However,in the field of income distribution,the income gap is too large and the structure is not balanced,which greatly weakens social fairness and efficiency,and is not conducive to the realization of full and balanced development.Among many factors affecting income distribution,social security plays a decisive role.However,such problems as the structure,the level of social security system makes its function in the field of income distribution become complex,and even some scholars believe that the social security system in our country there is reverse the effect of income distribution,the development and the pursuit of social justice,equality enjoy economic development achievements runs counter to the beautiful dream,also worsen the income distribution gap in our country,the long-term down more conducive to the development of social economy.However,as an important part of the government system,social security is a set of system based on the financial system.Fiscal decentralization system is considered to be the 1990 s important institutional reasons of Chinese rapid economic growth,China's fiscal decentralization system unique form of central finance rights,and the division of expenditure responsibilities,but the separation of responsibilities devolved to spending and over lead to local government expenditure structure and the financing preference,the divergence in the supply of social security,will affect the social security resources in groups,regions and the configuration of the differences between urban and rural,ultimately affect the realization of the function of the social security,and used for the field of income distribution.However,there is a lack of systematic and in-depth analysis of the role of fiscal decentralization system in social security and income distribution in the academic circle,and some theoretical and empirical research conclusions on this subject have great deviations.China is currently at the stage of runoff to realize a well-off society in an all-round way,to solve the problem of inadequate development not balanced,should be more in-depth analysis of the role of the relationship between the three,it is also the future a period of financial system reform,in order to improve social security,the study of this problem has important theory value and practical significance.This paper focuses on the reality of income distribution in China,that is,the income distribution within residents and the overall income situation of the resident sector in the national distribution pattern.It analyzes the evolution of local government social security policies and strengths under the background of fiscal system changes,and uses panel vectors.Autoregressive(PVAR),GMM estimation,least squares,intermediary effect and other measurement tools bring the fiscal system,social security,and income distribution into the same analysis framework,and discussed in detail the income distribution of urban residents in China,the income gap between urban and rural residents,In-depth research on the impact and performance of China's social security in income distribution,systematic analysis and consideration of the impact of financial system factors,local government social security supply factors on all levels of income distribution,transmission mechanisms and macroeconomics Influence Mechanism.The research conclusions are summarized as follows:First,the financial system reform,social security plan,and the evolution of income distribution policy under the background of economic system reform have historically coupled.During the transition of the economic system from a planned economy to a market economy,the fiscal system has also changed from a high degree of centralization to fiscal responsibility and then to a tax-sharing system.The social security system also follows the transformation of the national management system from a national security system to a socialized system.Development and improvement.This also means that the process of increasing the level of fiscal decentralization has obvious internal unity with the improvement of the social security system and the increase in the scale of social security expenditures.With the decentralization of power and expenditure responsibilities,local governments have better implemented the overall social security Expenditure responsibility.At the same time,China's distribution principles have become increasingly clear,and the concept of maintaining social equity and efficiency has become increasingly clear,and residents' incomes have undergone tremendous changes.First,the income of residents has increased substantially and the Engel coefficient has been continuously reduced.Chinese residents have long changed the reality that backward productivity cannot meet the material needs of the people,and are now on the path of pursuing a better life;The ways and possibilities of obtaining income are enriched.Residents have diversified sources of income,basically forming wage income,property income,transfer income and operating income.Finally,we should also note that there are differences in income distribution in China.The situation of equality is in contradiction with the concept of maintaining market fairness and efficiency.Second,by using the Gini coefficient of provincial-level urban residents' income inequality and the income gap between urban and rural residents to measure the current internal income distribution of residents,and using the panel vector autoregressive(PVAR)model,GMM estimation,etc.,we find that: The income gap between urban and rural residents and the income inequality of urban residents have a restraining effect,which means that the deeper the degree of fiscal decentralization,the more conducive to narrowing the income gap between urban and rural residents and the income inequality of urban residents,and can promote social equity.The social security expenditure has a promoting effect on the income gap between urban and rural residents and the income inequality of urban residents.The larger the scale of social security expenditure,the easier it is to promote the expansion of the income gap between urban and rural residents and the income gap between urban residents.Third,according to the Gini coefficient,the urban-rural income gap,and the MT index,this paper measures the effect of social security on the income distribution at the national level to the inter-provincial level and the provincial level income distribution effect of social security,and combined with the OLS model,that fiscal Decentralization makes the income distribution effect of social security expenditure in the residential sector more obvious.Based on the analysis in Chapter 5,it is believed that the deeper the degree of fiscal decentralization,the easier it is to strengthen social security to widen the income inequality of urban residents and the income gap between urban and rural residents.At the same time,fiscal decentralization is conducive to expanding the overall expenditure scale of social security,which is also a reason for fiscal decentralization to deepen the adverse adjustment of social security.Fourth,in the national income distribution pattern,the three sectors of government,enterprises,and residents basically maintain the largest proportion of the residential sector,the corporate sector second,and the government sector the least,and the share of residents' income is basically maintained at about 60%.Fiscal decentralization will inhibit the income growth of the resident sector,while social security expenditures will increase the income share of the resident sector,and there is an intermediary effect between fiscal decentralization,social security,and income share of the resident sector,that is,fiscal decentralization is in national income The role of the distribution pattern will change with social security as an intermediary variable.When social security expenditures increase,the role of fiscal decentralization in inhibiting the increase in the income share of the residential sector will be impacted.Fifth,based on the research results of the whole paper,this paper argues that Chinese current major problems are not only the "aggregate" problem,but also the "structure" problem,which leads to several contradictions in the area of income distribution,namely,although in the aggregate,the income of residents increases,but the gap is widening;Although social security expenditure increases the income of residents,it widens the income gap;Although fiscal decentralization can restrain the widening of gap,it will restrain the overall income growth of the resident sector.The reason lies in the imbalance of fiscal decentralization structure,incomplete division of power and responsibility,and single performance appraisal mechanism,which lead to the imbalance and insufficiency of social security resource allocation,supply structure and institutional arrangement,which makes social security prone to misposition of focus,and thus plays an unfair and inefficient role in income distribution.In addition,fiscal decentralization will expand the scale of social security expenditure,which will also strengthen the structural problems of the social security system itself,such as the gap between urban and rural areas,the difference in guaranteed objects,and the gap in treatment coverage.These inherent security levels and structural problems make the increase of social security expenditure scale may not narrow the income gap of residents and become the institutional reason for expanding the income gap.If the problem of "structure" is not properly dealt with,it will inevitably lead to fiscal decentralization to strengthen the adverse adjustment of social security and deepen the inequality in the field of income distribution.Based on the above analysis,we think to resolve the current problems of income distribution,first should deepen financial system reform,perfecting social security system,adjust the structure of income distribution,specifically: first,to focus on solving the structural problems of social security,set up the development of high quality concept,integrating the resource of the social security system and strengthen the main body of the social security responsibility,optimize the social security expenditure structure and scale,improve the overall level,broaden the financing channels,improve the system of sustainability;Second,we should look at China's current financial system,continue to deepen reform of fiscal decentralization system,optimize the structure of balance of the separation of powers,balance the government power and responsibility at all levels,at the same time improve the inter-governmental transfer payment system,strengthening the management of the finance vertical balance,and simultaneously the government budget management system reform,completes the whole caliber budget management framework,strengthen the responsibility to carry out the various departments at all levels,enhance the scientific nature of the government macroeconomic regulation and control;Third,build form a complete set of income distribution of driving mechanism,attaches great importance to the system the collocation of internal institutions,establish a diversified performance evaluation mechanism,form of local government behavior effectively guide,attaches great importance to the social welfare level,gradually to break the urban and rural dual barriers,balanced allocation of resources between urban and rural areas,fair and effective maintenance of the income distribution.