The Countermeasures Of Reducing Residents’Income Gap

The economy of Henan province grows fast since reforming and opening, people’s income andlife quality have been greatly improved. However, the income gap between individuals has beenincreasing while the general level of income is getting better and better, which has become a virtualproblem that influence the economic development of Henan. Combining with literature andempirical methods of research, this article has analyzed the income gap among Henan citizens fromdiverse point of views. There are multiple elements including both residents themselves and socialaspects in terms of income and time distribution bring the income gap of Henan. Therefore, in orderto operate the Henan economy development in a harmony, healthy, and sustainable way, we have tofigure out and analyze the real reason that causes the income gap, additionally, reduce and restrainthe gap with the comprehensive measures.Here are the four parts of this article.Part one, introduction. Which elaborates the background of this study: under the policy ofnearly30years of reform and opening up, the general income of both urban and rural residents inHenan have been greatly improved, but the individual income gap is increasing day after day, whichhas concerned the whole society heavily; in this respect, reducing and restraining the gap has beeninvolved in the Government agenda. Secondly, it describes the reason of choosing the topic: fromthe research perspective, analyzing the reason of income gap, and proposing some related policies,which provide a theoretical basis for the final decision. Last but not least, this article introduces thedomestic and foreign research situation generally, and the way of measure the income gap. Also,mainly introduces the basic concept of income distribution, domestic and international researchstatus and the income gap measurement, which provide knowledge preparation and theoreticalanalysis framework for the study of the problem of the income gap in Henan province. Meanwhileit introduces the basic research methods and innovation.Part two, the current situation and trend of the income distribution in Henan province. First itanalyzes the trend of the income gap in Henan, furthermore, it divides the changes of people’sincome in terms of stages: the article analyzes the general trend of income gap in Henan province,and the current mechanical changes from the internal income difference of rural residents’ incomegap and urban income gap, and additionally the income gap between rural and urban residents. So that the conclusion which the gap of income in Henan province is rather huge comes out, in theprocess of comparing the income gap in both horizontal and vertical ways.Part three, the analysis of the reasons of people’s income gap in Henan province. Whichincludes the difference of regional natural condition and science, technology and culture level, apartfrom this; the problem of restraints and poverty, as well as the worse re-distribution and thedifferent investment in human resource.Part four, the proper proposal of dealing with the income gap in Henan province. Specifically,according to the unique situation of Henan the proposals of perfecting the income distributionsystem have come out as following:1, perfecting the adjustment of income gap under the socialsecurity system;2, enlarging the employment, and increasing the income of the poor;3,strengthening the legal construction, and regulating the competition order;4, reducing the impactthat the identity restrict acts the labor drain from countryside to city;5, allocating the educationalresources properly, in order to enable the education to regulate the income gap；6, developing thenew rural construction, and narrow the gap between urban and rural areas.