An Empirical Analysis Of The Residents Income Inequality In China (1992-2010),

The14th National Congress established the establishment of our country’s socialistmarket economy as the goal of reform. In nearly two decades, our country developedrapidly in economic and the gross domestic product has increased steadily. In2010, ourcountry has become the world’s second largest economy, and the per capita GDP of$4400,which has already entered the ranks of middle income countries. However, therehave been some problems in the process of development in our country at the same time ofthe rapid expansion in total economic output, in which the expanding of the income gap ofresidents is a major obstacle restricting our country’s economic development.Since1992, with the perfection of the market economic system, the income level ofresident enhances unceasingly. However, due to different income growth rates among thedifferent groups, residents’ income gap expanded gradually. At present, the income gap ofresidents is mainly as follows: the income gap within the urban and rural internal, the gapbetween urban and rural areas, the gap in industries and the gap in regional.The incomegap of Residents is increasing day by day, which increased the social polarization and isnot conducive to alleviate social contradictions and maintain social stability. This problemhas brought a lot of adverse effects for our country’s economic and social development.The expansion of income gap of residents in our country, basically have the followingreasons. First of all, the expansion of the income gap is the inevitable result of the dualstructure in the process of industrialization.The level of urbanization in China lags farbehind the level of industrialization, leading to huge differences in labor productivitybetween agriculture and other industries. In the process of the flow of rural surplus labor,urban-rural income gap will be phased expansion of the phenomenon.Second, the incomegap is the result of the comprehensive function between the market mechanism itself andmarket shortage.At present, the imperfection of the wage growth and consultationmechanism, the widespread of labor market segmentation and industry monopoly, these areall important performances of market shortage,which further increase the income gap of residents.Third, the expansion of income gap has the related to the government regulationand control policy. The non-balanced development strategy of government,Non-equilibrium development of the public service between urban and rural areas, the lackof regulation function of government all increases the income gap of residents objectively.In order to crack the difficult problem of residents income gap, the government muststart from the following three aspects.First of all, we must correctly handle the relationshipbetween the economic development and income gap and establish the concept ofcoordination of urban and rural, regional harmonious development to promote theharmonious development of economy.Secondly, we must establish and perfect the wagesgrowth and consultation mechanism for workers, establish a consolidated urban andrural labor market, break the industry monopoly,to create a fair competitive marketenvironment.Finally, we must constantly improve the fiscal transfer payment system,promote the equalization of public services construction actively, speed up the tax systemreform,perfect the social security system covering both urban and rural areas further,inorder to achieve the goal of common prosperity ultimately.