China's Income Distribution Disparity Study

With the further economic reform and rapid economic increase, Chinese people's income and living standard are greatly improved; at the same time, the distribution gap in the residents' income is be coming larger. It's significant both in theory and practice to have a correct attitude, toward reality, cause and result of the gap's enlargement .as well as the measures taken to shorten it efficiently.This paper brings forward four points of the above problems. First, give a general idea on the theory of income distribution by analyzing the Chinese distribution theory and western distribution theory. Second. By analyzing the present gap, point out that an obvious income gap has taken shape and has a tendency of enlargement year by year from the aspect of Gina coefficient, between the urban and rural area, the different districts in those areas, and different lines. Finally, put forward a policy selection used to narrow the gap, by means of improving the labor quality to increase the employment opportunity, taxation policy , system construction, perfection of social security system. Based on the above theories and analysis, the author stresses than under the specific condition of China (large population, backwardness in economy, etc), the fundamental way of solving the problem of the distribution gap among all the policies is to focus on education, improve the labor quality, and provide stable employment opportunity.