The Initial Imbalance In Income Distribution And Its Impact On The Consumer Research

30 years of reform and opening up, China has achieved annual average economic growth of 9.9%,become a major force in world economic development. However, income distribution as a constraint to economic and social development,residents can not keep up with the growth of GDP for many years,and income distribution gap is widening.With the problems of income distribution,the consumption rates have decreased,the long-term drag on household consumption continued growth of final consumption.Domestic and foreign scholars has done a lot of theoretical and empirical research,however,the initial distribution of consumption seldom involved. Initial distribution is the initial stage of China's income distribution and it is the most basic and important stage.The study of the initial distribution of consumption have great theoretical and practical significance. This article firstly discusses the theory of Western consumption,then summed up the impact of the initial distribution on consumption.(1) labor income is the main source of consumption.(2) the gap of initial distribution is too large,directly reduce the tendency of total social spending,thus affecting the residents of the total consumption. Then the author discusses the field of primary distribution of the total amount of imbalance and structural imbalance. Since 1978, wage income down a large proportion of the total allocation from 15.7% in 1978 to 11.4% in 2009, while the Western countries this proportion of 40%-60%,and this trend still exists. Caused by the initial distribution is mainly reflected in the wage gap between employees within the enterprise, wage gap between urban and rural areas, industry and regional distribution of the wage gap.Household consumption rate also has declined to only 35% level in 2008,09, which significantly lag behind other countries.In order to verify the impact of the initial distribution on the consumer Econometric models as Cointegration, Granger causality test were applied to find that the total imbalance had the impact on consumption and are one of the reasons sluggish consumption.Through the use of high, medium and low levels of income and consumption,found that APC of high-income groups tend to lower middle income group, middle-income groups and lower than the low-income groups.The income gap really impact on personal consumption. Finally, household consumption accounted for by the proportion of final consumption ratio and the labor share, the Gini coefficient of income distribution of the regression, the coefficient of the initial distribution of labor share of 0.13, the Gini coefficient of the coefficient of 0.44, indicating the formation of the initial distribution of the income gap is still is the most important factor of the consumer. While the decline in the labor share is gradually becoming an important reason for restricting the consumer. Therefore this paper focus on narrowing the income gap in order to better promote the consumer. Finally, I proposed reforms of the initial distribution to expand consumption.Finaly this paper proposed reforms of the initial distribution, firstly principle of the reform as a reform to expand consumption as an important indicator. This article put forward a sound system of minimum wages and wage growth mechanism established to improve the initial distribution of the total balance and more focus on equity and narrow the income gap between the initial distribution reform. So as to provide the steady growth of consumer income base, the smooth realization of our country's expanding domestic demand and achieve stable and healthy economic growth.