Analysis On The Problem Of Excessive Income Differential In China

At present, China is at the middle stage of industrialization when Chinese economic structure and economic system changes have taken place radically that has had important influences on the relations of income-distribution. The problem of income-distribution with which people's benefits are closed related has been a topic of general interest. This article focused on the problem of Chinese present excessive income differential .At first, this article employed dynamic and quantitative analysis to study the changing trends of income differential in China since the economic reform. After the economic reform, the income differential in China has been expanding. There are many factors that have influences on it, such as the income differentials between urban residents and rural residents, the income differentials among regions, the income inequality of urban residents, the income inequality of rural residents. Presently, the income differential in China has exceeded the generally recognized international security line governing income-distribution and has been excessive. There are many causes that resulted in the present excessive income differential in China, such as the obstacle of economic and political system, the improper choice of economic developing strategy, lacking laws and policies correlated with income-distribution. Excessive income differential has brought about a series of negative influences on the whole economy and society. It has undermined social stability and harmony and has become a barrier to expanding domestic gross demands and healthy economy functioning, and so on. In order to reduce the excessive income differential in China, first we must create equal economic opportunity for all the Chinese, which is the basic access to reduce it, and then we should adjust out economic developing strategies and policies.