The Impact Of The Social Security System On Rural-urban Income Disparity And Countermeasure Research

For a long time, rural security is always in the edge of social security in China,majority of farmers are beside the social security system.That shows in two aspects:(a)in the social succor, the number of people given lowest cost-of-living in urban area is greater than rural area;(b)in the social insurance, town dwell enjoys medical insurance, pension insurance, unemployment insurance, work injury insurance and maternity insurance. But in countryside, few people enjoy medical insurance, pension insurance, and work injury insurance,which leads to rural poverty.From this aspects,the difference of rural-urban social security is closely related with the increasing rural-urban income disparity.ln theory, rural-urban social security difference makes rural-urban income disparity larger. So exactly computing the gap of rural-urban income disparity affected by social security system, will provide data and theory support for improving social security system and narrowing the rural-ruban income disparity.In this paper,there are two innovations:(a)in theory,most scolars just analyze rural-urban disparity from income disparity,even if from social security,the analysis is unilateral and not comprehensive enough. However this paper is unique,it comprehensively analyses how social security, including social succor,social insurance,social welfare and so on, affect rural-urban income disparity,so as to make the theory perfect.(b)in method,most scolars just analyze the effect of social security on rural-urban income disparity in quantity because of the short of time series data,this paper use modern econometric method—Panel Data Model.This model has many advantages:expanding the sample,solving the defect of small sample, maintaining a sufficient number of degrees of f r e e d o m , a n d o v e r c o m i n g t h e m u l t i - c o l l i n e a r i t y t o s o m e extent.Therefore,the regression result is reliable,and provide strong support for the government's decision-making.Panel Data Model results show that the social security system affect urban-rural income disparity significantly and make the disparity larger,the urban and rural income gap is deeply influenced by their difference of medical insurance, pension insurance, unemployment insurance and lowest cost-of-living insurance,and the disparity becomes larger in a great degree.Basing on the regression results of Panel Data Model,government should intensify pension insurance in the countryside,and break boundaries between rural and urban; and establish serious illness medical insurance system, which can effectively avoid the situation of poverty caused by illness;and establish unemployment insurance for the landless peasants,strengthen farmers' vocation skills training,expand farmers' employment channels;establish farmers' work injury insurance for migrant workers in cities;establish the system of managing and excuting lowest cost-of-living insurance covering the whole countryside quickly,and the civil administration system is responsible for the funds especially and the county-level governments mainly manage the funds, and imply the funds in special transfer payments for the lowest cost-of-living insurance,so as to ensure a stable source of funds.