The Theoretical And Empirical Analysis Of Urban Residents' Income Gap Of Shandong Province

Under china'reform and opening-up policy, the process that the total economy of Shandong province has made represented rapidly,steadily and sustainably. With the fast development of market economy, the urban residents'incomes has got obvious increased. Meantime, the income gap among the residents catched eyes. The attitudes and perspectives on the outcomes and effects caused by the income gap will have close connections with the total economy which would keep harmonious and sustainable. Plenty of scholars have made efforts on the problems, yet do not get consensus. But from the studying, it is positive that the development of the economy do not necessarily increase the welfare of everyone. When dealing with the relationship of efficiency and fair, the key point depends on the attitudes towards the intention of economics development and strategies taken. To be specific, a series of policies may clear up the conflict between efficiency and redistribution method which promote fair, even it will be benefit for raising efficiency. Now under the principle "the efficiency first, and gives dual attention to fair", the macroeconomy has made progress step by step, and it is necessary to manipulate to diminish the distinctions caused by improper factors effectively that will make significance on the process of well-being society. So it is the main purpose of this paper why should be chosen.After studying the fruits in this area, the paper will take methods which tie theoretical analysis and empirical analysis, qualitative and quantitative analysis. So first, it will analyse the general situation,different areas and industries'income gap of urban residents. The results represent that the degrees of income gap among different areas, industries and layers have increased. Besides that, when making predictions of the future income gap through the time series analytic method, it shows that the conclusion does in accord with the above analysis. secondly, in the empirical analysis section, it will make systematic research on the factors which have major impacts on the income gap of urban residents. In this part, it will also use the knowledges of econometrics and multi-dimensional statistical regression analysis, the results represent the impacts of major factors on Gini's coefficient are distinct, the most important factor is the proportion of export amount upon GDP, it shows that the development of economy has prompted the income gap strongly, this is in accord with theoretical analysis. Finally, the paper will put forwards relating suggestions and strategies, hoping that it will benefit for making policies aiming at bridging the income gap.