The Regulating Mechanism Analysis Of Social Security System On Narrowing The Income Gap Of Our Country Between Urban Residents

Whether the Capitalist countries or Socialist countries, the income gap are the product of the process of economic development. Impact of the social system is not the main reason for income gap; income gap depends mainly on the control measures taken by the State. China as a socialist country, after 30 years of reform and opening up, economic development has made remarkable achievements. Income level relative to the pre-reform and opening up, has been made several times of the year. On the other hand, the phenomenon of unfair distribution among the residents has become increasingly serious.2010, china's Gini coefficient has exceeded 0.5, and the income gap has been in a very serious situation, if the government does not take measures timely and effective, would jeopardize China's reform and opening up 30 years of development. Therefore, under the reality of the situation in our country, regulation on the issue of income disparity is urgency and significance. Social security problem of adjusting the income gap in China is not only central and local important issues currently facing, but also focus on the economic of the problem. Exploring the social security mechanism for income redistribution and to identify not only conductive to economic development and help narrow the income gap has important theoretical and practical significance.In this thesis, the distribution of income as the center, social security as an entry point, social security regulation on the theory of income distribution as the background sources, exploring the social security mechanism for the regulation of income distribution.In the theoretical analysis, the main analysis of Western society on social security income distribution adjusted for the major theoretical schools. Economic liberalism, state interventionism and the Third Way are explained from different point of view of income redistribution social security regulation point of view, trying to play a redistribution of the social security function of the whole historical process.In the empirical analysis, using eviews software to analyze the regulation of social security to the entire mechanism of the income gap. Social security,income gap,the average propensity to consume, effective demand, economic growth,social security every step of the transmission mechanism have carried out strict Granger causality test. Prove the correctness and feasibility of the transmission mechanism from the evidence. The results showed that:The financial expenditure for social security and urban income gap exists between the two-way Granger causality, financial social security expenditure because of urban income gap is the result of urban income gap. Urban Gini coefficient is the leading cause of urban average propensity to consume, but the urban average propensity to consume is not the leading reason to urban Gini coefficient. Therefore, the urban gini coefficient and the average propensity to consume is one-way Granger causality, gini coefficient urban expansion led to the decline in the average propensity to consume. Consumption growth is both cause and a result of economic growth, economic growth is the result of social security expenditure Granger causes, and social security expenditure is not the economic growth causes. There is only one-way Granger causality, economic growth contributed to the increase in social security expenditure.