The Changing And Effect Of Income Inequality In China

In recent years, our country is still in the rapid development of the economy not only increased our country inhabitant’s income, also increased our income gap. The increase of income gap of residents in our country, a direct impact on the consumer, causing our consumption on economic stimulus the phenomenon of growing decrease. This paper analyses the present situation of income gap and consumption of income gap analysis and put forward the theoretical basis of the consumer influence as well as how to solve our widening income gap and consumption shortage problem.This paper leapt out of the traditional literature only analysis of income gap between urban and rural area of our country, will unscramble the income gap between urban and rural areas and towns are divided into the gap between the income gap between internal and rural internal income gap, and of their different characteristics are analyzed, and based on the different characteristics corresponding narrowing the income gap policy Suggestions. On the analysis of the influence of income gap, this paper consumption by theoretical analysis and empirical analysis, this paper discusses the method of combining the income gap between what way is through effect on consumption, and groundbreaking established consumption and gini coefficient model, can directly research in gini coefficient change, spending will be how to change. This is also the main innovation paper.This paper is divided into five parts. The first part is mainly summarizes related academic research results. This paper will be divided into three categories: the related researchThe first part studied how to measure the income gap, this literature includes both existing measure indicators of income gap, such as gini coefficient, also including these indicators of thorough research, such as the gini coefficient, suitable for China the decomposition of the formula of calculating gini coefficient etc.Part ii of this article analyzed China situation of income gap and consumption. The author after research found that although China’s overall income gap presents the obvious growth trend, but if the income gap between urban and rural income gap, refined to the income gap between rural and urban internal internal income gap, can still be found between the three little different. In recent years in China increased mainly reflect the income gap between urban and rural income disparity and towns for the increase of internal income gap, and the income gap between rural internal maintained a relatively stable trend.The third part of the paper theoretically analyses the influence of income disparity on consumption. The author thinks that the income gap mainly through different income crowd of consumption tendency, the different aspects of savings tend to change its consumption behavior, and thus influence on the whole society consumption. In addition, the inflation, the income gap will be amplified, accordingly, the role of income disparity on the consumption will be enlarged.The fourth part further empirically demonstrates this view. The author groundbreaking to measure the income gap - gini coefficient as an important index regressors, average consumption tendency as be explained variables, established the model, and prove the income gap through different income levels of consumption tendency of different consumer influence this view is set up.Based on the analysis of the above, the author in the fifth part puts forward relevant policy Suggestions. Mainly divided into two types of policy recommendations:narrowing the income gap policy advice and weakening the income disparity on the consumer influence policy Suggestions.