Research On The Influence Of The Equalization Of Basic Public Services On Income Gap

Since the reform and opening up, people’s living standard has improved significantly. But the gap of income has not improved, and even showed the enlargement. So adjusting income distribution and narrowing the income gap has become an urgent problem. This paper firstly analyzes the mechanism of the influence of basic public services on the income gap, and then describes the present situation of the income gap and the equalization of basic public services in China. To the next step, we measure the intra and inter regional income gap and the equalization of basic public services by using the Theil index, with eight economic areas in China as the research object, and through the panel data fixed effect model, we analyze empirically the impact of the equalization of basic public services on the income gap, and finally we make suggestions to realize the equalization of basic public services, in order to narrow the gap of income distribution.According to the results of the Theil index, compared with the intra-region gap, the inter-region gap has higher contribution to the general gap both in income gap and the equalization of basic public services in eight economic zones. From the results of the model, the “Input” and “Output” of basic public services and the gap of income are positively correlated, that is to say, the equalization of the “Input” and “Output” of the basic public services help to narrow the regional income gap. From the analysis of correlation coefficient, the initial “Input” of basic public services has a greater effect on the income gap; so whether in the intra-region or in the inter-region, we should first do a good job in the initial “Input” of basic public services equalization, so that to promote the equalization of the follow-up basic public services. And compared with the intra-regional correlation coefficient, the “Output” of basic public services in inter-region has an even greater impact on income gap.In order to alleviate the income gap, we should actively promote the equalization of basic public services, and mainly take practice from the following aspects: establishing a basic-public-services-oriented financial system, reforming transfer payment system, standarding the responsibility among the governments, increasing steadily the expenditure in the basic public services; perfecting the construction of infrastructure, popularizing basic education, improving medical and health services, improving the coverage of social security, promoting the equalization of basic public services; making standardized performance evaluation system of basic public service and striving to improve the performance of the equalization of basic public services.