Empirical Analysis On Redistribution Mechanism's Reverse Regulation To Urban-Rural Income Inequality In China

After reforming and opening to the outside world, the incoming level of the inhabitants between city and countryside in China has risen by a big margin and the urban-rural resident's inequality has constantly extended with it. The incoming gap was ever narrowed in the early 80s. But in general, the fluctuation margin has appeared an extending trend during the year 1978-2007. Studies on income difference of urban-rural residents are many, which are restricted to only describing income difference and seldom analyzing its determinants that have been systematically researched in papers. This paper make analysis on the redistribution mechanism's regulation to the urban-rural income gap.In this paper, firstly the author study systematically existing research literature about Chinese solution approach on urban-rural resident's inequality and give a brief review. Secondly the writer measures the urban-rural resident's income inequality in China and decomposes the inequality's periodical fluctuation. Thirdly indicates the moral idea that the redistribution mechanism contrary regulates and extends the income gap. Finally, advices which decrease the income gap are given in the forth part.This article is based on the method of combining the theory and reality together. The first finding of the paper is that the cyclical fluctuation is appeared along with urban-rural inequality's expansible trend. The effect of income structure led by the stepwise system reformation is the dominating compellent reason, the distributive effect reduce the inequality two times during the year 1978-2007. The paper indicates the fact that the first income distribution is the dominating compellent reason and the redistribution mechanism contrary regulates and enlarges the income inequality. The effect of the income of redistribution's reverse regulation more than that of the expenditure of redistribution's decrease effect, So the redistribution mechanism broaden the income gap. The effect of the redistribution mechanism regulate urban-rural income gap is limited because of emphasize on income and light on expenditure in redistribution mechanism.The author make suggestion of perfecting the income and expenditure of redistribution mechanism in the end, and argue that only when the urban-bias non-balanced development strategy change into the balanced development of strategies, redistribution mechanism can be really positive regulator of the gap between urban and rural areas, thereby reducing the gap between urban and rural areas, incomes at the area of urban-rural integration implementation.