The Research Of Shanghai Residents’ Income Gap Analysis And Countermeasures

The problem of income distribution is one of the political、economic&social focuses about the people and the state’ the vital interests, and it’s alsothe focus of attention and study areas by the world of governmentdepartments and research institutions. In our country, especially in the criticalperiod when we implementing the current scientific concept of development,building a socialist harmonious society, building a moderately prosperoussociety, there is important practical significance to strengthen the research onincome distribution.Since the Reform and opening, rapid economic development ofShanghai has made remarkable achievements. But with the rapid economicdevelopment, the people’s living standard and quality of life improvedsignificantly, various contradictions and problems are also increasinglyprominent, such as the lagging behind in income distribution system reform,the low share of the labor compensation at the initial distribution, the lowproportion of the people’ income at the national income, the increasingincome gap among the members of society and between the urban and ruralareas. There is also other problems, for instance, a trend of widening aboutincome distribution among the industries and the between the urban and ruralareas, the lack of standardization about the income distribution order, and soon. Contradictions and problems caused by these reasons: First, the factorsof economic transition, which is the results of many factors that plannedeconomy to market economy in the process of transition; Second, the factorsof the income distribution system reform lagging behind. Since theequalitarianism distribution system was broken, a variety of factors indistribution systems had been gradually formed, but the labor and capital, andother elements involved harmoniously in distribution system has not yet beenestablished; third, there is still unreasonable, irregular, illegal distributionways mainly due to inadequate market competition, accessing to high-incomein monopoly industries. In addition, during the process of System transition,the abuse of power, unreasonable and even illegal income distribution alsocontributed to the inequitable distribution and a widening gap.These contradictions and problems have triggered a series of badeconomic and social impacts. Therefore, we must give great efforts to solvethe contradictions of income distribution, and if left unchecked, it willbecome the major risks effecting the economic development and socialstability.In order to gradually solve the contradictions and problems that exist inincome distribution system, we should further improve income distributionsystem, standardize income distribution rules, and construct a mechanism of" securing the low-income, expanding the Mid-Income, regulating thehigh-incomes,” in other words, the mechanism must protect the basiclivelihood of low-income groups, gradually expand the proportion ofmiddle-income groups, and effectively regulate excessively high incomes.And by the mechanism, we can alleviate the trend of widening income gap,gradually establish the distribution system that beneficial to the forming of"olive" social structure, and make all the Shanghai citizens share the reform and development results.In this paper, the author explores the reasons on the income gap inShanghai and gives the suggestions to solve the problems based on theeconomic theory and the analysis and comparison to lots of data andinformation.