Jiangsu Province, Rural Residents' Income Gap Study

Since the economic reform and opening to outside of the world, China's economy and family's income increased rapidly. However the change of the rural residents' income inequality is especially distinguished. But most of the former researches carried out their analyses on traditional statistical data and macro-level, with few from the aspects of factors and micro-level. So, on the basis of analyzing the characteristics of Jiangsu province'income inequality, this paper analyzed the reason of rural residents' income inequality and the income intergenerational mobility. The research content was divided into five parts:In the first part, this paper constructs a theory frame on the basis of reviewing and estimating the income distribution theories and former researches about the rural income inequality. Firstly, applying the new classical economics theory, this paper simplifies and abstracts the income inequality as the factor market's distribution. Then, this paper determines the influence variables of the rural residents'income inequality as residents'factor endowment and external market environment. At last, this paper analyzes the different ways of these two variables influencing the income inequality, income inequality change and income intergenerational mobility. The following contents are to prove the theory advanced here through positive analysis.In part two, this paper analyzes the characteristics of income and income inequality through measures of Gini Coefficient and Theil Index. The result indicates that rural residents'income and income inequality has increased a lot since the reform and experienced three evolving phases.The third part analyzes the income inequality throng the decomposition of Gini Index and the decomposition of the Gini Index's change. Firstly, on the basis of Gini Index decomposition, this paper analyzes the influence character of every factor on the income inequality. Then, this paper applies Wan Guanghua method to decompose the Gini Index's change. It decomposes every factor income's concentration index and income proportion finally. The result proves the view that external market environment changes the income inequality within a village through changing its income structure.The four part, using Yangzhou as example, analyzes micro influence factor of rural residents'income inequality. Through decomposing of the Gini Index of Yangzhou in 2005 for twice, we can make conclusion that non-agricultural income is the main reason of income inequality. Then this paper establishes non-agricultural income equation. By using step-by-step regression, it make out that education, house labor number and land are the main influence factor of rural residents'income inequality. This also proves the theory hypothesis——the residents'factor endowment is the main reason of rural income inequality.In the fifth part, this paper firstly analyzes the present character of inter- generational income mobility by adopting the flow and inheritance indicator. Secondly, this paper uses the method of path-analysis and binary logistic regression to find out the role of education in promoting intergenerational income mobility. Major conclusions are as follows: (1)It is suggested that fathers'income has remarkable influence on their children's income. (2)It is proved by evidence that Education plays an important role in promoting intergenerational income status. It redounds to the offspring of lower status to jump up to higher economic status.