The Trajectory Of Chinese Residents’ Income Gap Presented Inflection Point Trends And Theoretical Analysis

This paper did empirical research on the evolution trend of Chinese residents’income gap which was concerned. The author pointed out that the gap of Chinesedweller income has presented the inflection point trajectory trend in recent years andanalyzed the reason of the trend.The first chapter of this paper is mainly on the results of previous studies.The second chapter elaborates Kuznets “inverted-U hypothesis”、Lewis turningpoint、Deng Xiaoping’s “first rich and common prosperity”, they are all the classictheory about the evolution of income gap.The third chapter proves the trajectory of income gap in our country has appearedinflexion. This chapter uses some methods, such as Gini coefficients, income ratio,chart analysis, to analyze the income gap of inter-region and between rural and urbanareas in multi-level and multi-angle, and determines the trajectory of residents’income gap of our country has showed a trend of inflection point. Then the paperanalyses the reasons for the change of the income gap between urban and ruralresidents from the source of income, finds that the wage income is the most importantfactor to dominate the income disparity change trajectory.In the fourth chapter, it explains why the income gap of China presented inflectiontrends in deep-seated meaning. This paper holds, in the “pour U hypothesis” ofKuznets, the transfer of labor force lead to population structure changes, and thennarrows the income gap by the viewpoint of mathematical statistics. The socialsecurity will improve the level of welfare, the progress of science and technology willpromote employment level. Lewis turning point describes that the transfer of labormay narrow as a whole and urban-rural income gap in the long run, at the same time,Lewis turning point also explains the trend of expansion after the first narrow whatthe share of labor compensation presents. Deng Xiaoping’s “first rich and commonprosperity” elaborate from the point of view of the non-balanced development, underthe policy guidance; the income gap will realize expand after a narrowing trend.However, the three classical theory also have some place does not meet the realdevelopment. Kuznets “inverted-U hypothesis” does not involve more microscopicsuch as regional and urban-rural. Lewis turning point default the expansion of themarket is sufficient to absorb China’s huge surplus labor, and it ignores the importantrole of the social security policy. Public ownership economy takes main body which the Deng Xiaoping’s “first rich and common prosperity” describe remains to befurther implemented.The fifth chapter puts forward some measures to further narrow the income gap,it concludes:(1)Pay more attention to the income distributing adjustment function ofsocial security, accelerate the establishment of the social security system for thebenefit of all the people.(2) Innovate the model of urban development, use “threechange” coordination to achieve scientific development.(3)Consolidate theachievement of regional coordinated development fatherly，reduce the income gapbetween regions gradually.(4)Innovate the business model of state-owned enterprises,improve the influence and control force of the public ownership economy.