An Empirical Research Of Fujian Social Security Expenditure And Income Gap Between The Urban And Rural Residents

With the development of economy, people’s material life level gets s a further ascension. the focus of the people are constantly changing, from pays for work and more work for more pays to hope more fair income distribution and reduce the growing income gap of residents. This "we don’t care have a few but uneven" becomes the best confirm. The18th annual people’s congress report also illustrates the basic direction to deepen reform of the income distribution system; again it has been clear about that we should take account of both efficiency and fairness in first distribution, and more attention to fair in redistribution. If first distribution is more according to the market mechanism, then redistribution is the key to narrow income gap. To build the perfect social security and strengthen the social security investment as the main means of redistribution adjustment mechanism,, we should have a2%increase in social security and employment proportion of financial expenditure during Twelve five-year plan, and let the social development and fair benefit all the people.We also face a growing income gap problem between the residents in the course of economic development in our province. The local finance has already become the main body of the social security expenditure from points tax reform in1994.Social security expenditure continues to expand both in the scale and scope and optimize structure step by step. The income gap between urban and rural residents since the reform and opening up presents a "narrow-expanding-small narrow-gradually enlarged" trend in our province. Are there any inevitable connections between our province social security expenditure in urban and rural income gap change contribution? In addition, should we change social security expenditure policy decision for our province income gap between the urban and rural? In order to deeply find the inner relationship, we enriched the connotation of the income gap between the urban and rural based on the empirical parts:the urban income gap between internal urban residents, income gap between urban and rural residents and the internal income gap between rural residents. We established three time series model tentatively to discuss the relationship between the social security expenditure. According to the empirical results,we found that social security expenditure is only the reason for income gap of urban and rural residents, and is not the cause for this difference within urban residents and rural residents income gap between the internal.And social security expenditure policy is not caused by the income gap between urban and rural residents. In general, social security expenditure enlarged the income gap between urban and rural area, the contribution rate is about17%, so17%of the income gap between the urban and rural social security is due to social security expenditure.According to the empirical results, it can be seen that the existing social security expenditure is expanding income gap between the urban and rural, blind increasing social security expenditure scale can be discouraging, but economic growth could narrow the income gap between urban and rural areas. Therefore, this paper argues that more fair income distribution should persist in taking economic construction as the key point, we should improve labor remuneration in the proportion of residents’ income, multi-channel the low-income residents property income, break the social security system’s unfairness in urban and rural areas, speed up social security as a whole, let the achievements of development benefit all the people.