A Study On Livelihood Expenditure Effects On Income Gap Between Urban And Rural Residents: Based On Zhejiang

With the reform and opening up and development of market economy, themodernization of the new historical is standing at new point, the urban and ruralresidents’ income has increased rapidly. However, economic and social developmentshave exposed some problems, especially income gap between urban and rural residents’expanding. Although Zhejiang province, located in the economic front, the income gapbetween urban and rural has expanded.In daily life, we often see some people are flaunting its luxury house or car, somepeople are wasting of money, while others are under begging, someone can’t affordmedical costs so that they are ill in bed. If appropriate income disparity may be put uplabors’ productivity, stimulating economic growth, the excessive income gap will havegreat harm on economic development, social harmony and stability.Public expenditure has three functions. There are resource allocations, regulatingincome distribution and stable economic growth.The government goal of incomedistribution functions is to distribute by endowment and product in the community ofthe members to narrow the income gap and eventually make the maximize the economicand social welfare.The people’s republic of china on national economic and social development of thetwelfth five years of planning program proposed “Everyone has a chance to receiveeducation, medical, social security and employment, house”. It makes education,medical, social security and employment, housing and other social undertakingsimprove more and more attention and the local government put more aware of to protectand improve people’s livelihood, narrowing the gap in urban and rural residents. As2009the promotion of appliances goes to the countryside, the government’s policy ofthe inhabitants of rural households to buy the specified requirements for subsidies direct.And subsidies for household electrical appliances is selling price of13%. In fact,subsidies stem from tax receipts, subsidies object is inhabitants of rural households, sothe policy has changed the pattern of income distribution, the taxpayers are subsidies tofarmers’ income from public spending, and this is the income distribution function.In the background of this article, the paper analyzes the relationship between thelivelihood of government expenditure and income distribution. Concrete research wayof thinking and the main conclusion as follows：The first part is the comprehensive. In this section, studies the main outcomes of public expenditure and income gap in urban and rural residents by home and abroadscholars, including public expenditure structure, the income gap between cause andtrends, with a summary of the scholars studying the general directions and contents.Through scholars’ research, the author verifies the roughly direction and content. At thesame time, summarized the research achievements at home and abroad have existed inthe two studies, and deeply, targeted to the people’s livelihood expenditure on incomedistribution gap impact analysis, make it become the focus of this paper.The second part is the basic theory in the paper. The author systematically definingthe people’s livelihood expenditure and income distribution of related concepts alsointroduces the theory, including income distribution theory, public expenditure of theeffects of income distribution and equalization of basic public service. These theoriesare applied to elaborate people’s livelihood expenditure of urban and rural residentsincome distribution gap, also sturdy confidence of author to apply these theories toexplain the influence of the Zhejiang province people’s livelihood expenditure onincome gap between urban and rural residents, in order to better this paper describedprovides a good theoretical support.The third part is the third chapter and the fourth chapter. On the basis of the theoryabove, the author collects a large amount of data, thoroughly provides in Zhejiangprovince country residents the trend of the income margin carried on a descriptionanalysis, introduced the basic survey based on the livelihood of the people spending,also analyzed the income gap in urban and rural residents in Zhejiang province. Thefourth chapter analyzes the relationship between the livelihood of governmentexpenditure and income distribution based on relative data from1999to2010inZhejiang province. According to findings, the results of the study show that the effectsvary among different spending Education spending has substantially widened incomegap while medical health spending and social security spending can reduce income gap.The two chapter separately from horizontal, vertical levels, using different mathematicalstatistical method, analyzed Zhejiang to save the expenditure of urban and rural incomedistribution effects, ultimately come to the education, employment, social security andhealth care expenditure in narrowing the income gap between urban and rural residentshave a certain degree of influence.The fourth part analyzes the relationship between the livelihood of governmentexpenditure and income distribution based on relative data from1999to2010inZhejiang province. According to findings, the results of the study show that the effectsvary among different spending Education spending has substantially widened incomegap while medical health spending and social security spending can reduce income gap.The fourth part puts forward some recommendations based on the above analysis of the livelihood of the people spending、urban and rural residents’ income gap and so on.Including the role of the government in the income distribution of function and role,spending more on education, perfecting social security system and realize the equalityin health service level. These policies can make up the reality in Zhejiang provinceeducation, social security and employment, medical and health service expenditure isinsufficient, which to a certain extent in narrowing the income gap between urban andrural residents, improve people’s whole life level. Including the role and the function ofthe government in the income distribution, spending more on education, perfectingsocial security system and realize the equality in health service level. To compensate forthe education, social security and employment, medical and health service expenditureis insufficient in Zhejiang province, which to a certain extent in the narrowing ofincome gap between urban and rural residents, improve people’s whole life level.