The Empirical Research Of The Effect Of The Regional Differences In Education On The Income Inequality In China

With the development of social economy, the income level has significantly increasedin our country. At the same time, the phenomenon of the imbalance in regionaldevelopment and the distensible gap in regional income has not obviously improved. Thereare various factors result in the gap, in specific, the regional differences in education is anessential factor which causes the income disparity. Since reform and openness, thedevelopment of educational business has gained tremendous progress; educationalattainment level of residents shows an increase trend as well. Nevertheless, thedevelopmental level of territorial education is disequilibrium, Educational differencesaffects the balanced development of economy, society and culture in China. The incomelevel is directly influenced by the educational attainment level of residences.In recent few years, an increasing number of studies on educational equality andincome disparity are researched by international and domestic academics; there aredifferent conclusions which are analyzed by diverse point of view and methods from eachacademics. This paper is based on the previous researches. Firstly, it will focus on theregional educational opportunity, educational process, educational outcomes and per-capitaincome; secondly, a substantial amount of indicators such as standard deviation, coefficientof variation and multiple will be applied in the analyzing actuality of the regionaldifferences in education and income inequality respectively. Thirdly, it will apply theeconometric methods to analyze the influence of the gap between urban and ruraleducation on the income gaps between urban and rural residents. Finally, the relativemethods of nonparametric and Spearman will be adopted for the analysis of the effect of educational differences on the income inequality of residents in Eastland, Midlands, westarea and northeast area. The conclusions of the study are as follows:1. The gap of average education attainment between urban and rural is proportional tothe gap of average per capita income between urban and rural, particularly; the gap ofaverage per capita income between urban and rural shows an expansive tendency as theexpansion of the gap of average education attainment between urban and rural, and viceversa. Moreover, the payout of culture and entertainment between urban and rural areasand the differences in GDP per person distinctly affect the educational level, and then itinfluences the average per capita income between urban and rural.2. The education in Eastland, Midlands, west area and northeast area and the averageper capita income simultaneously show a characteristic which is the east is higher than thewest. Comparing Eastland and Midlands, west area, northeast area, a biggish difference isdistinct among those areas, and also the differences between the higher-level areas and thelower-level areas are evident, Polarization is especially obvious.According to the conclusions of empirical analysis, it suggests the policy to narrowthe educational gap, it positively contributes to promote the balanced development ofregional education, it is states that shrinking the differences in the regional education, andthen lessening the gap of average per capita income of residents, achieving commonprosperity.