Research On The Regulatory Effects Of Social Security To Urban Residents’ Income Distribution-with The Data Of Guangdong Province

With the establishment of the market economy system and improvement of the levelof national economy development, the living conditions of residents in our countryhave been improved dramatically. However, due to some problems of policy system,the Gini coefficient of citizens is rising, and the gap of income is expanding. This doharm to the development of economy and the stability of the society. The distributionof income has become China’s important economic and social problems currently.Characteristics of the market mechanism make the primary distribution pay moreattention to economic efficiency, which will lead to unfair and influent the economy’sdevelopment and society’s stability negatively. Therefore, the government shouldbuild the social security system of redistribution to make the redistribution of incomemore reasonably on the basis of primary distribution. Through the theoretical researchon the social security income distribution theory and regulation mechanism, this papertries to clarify the relation between social security and income distribution. Byanalyzing the development of social security system and the present situation of theurban residents’ income gap and according to the social security spending and theGini coefficient of urban residents from1995to2012of Guangdong province. Thispaper applies the method of empirical research of Unit Root Test and GrangerCausality Test to clarify the relationship between social security and the urbanresidents income distribution of Guangdong province，and analyzing its effects ofadjustment. The outcome shows that social security adjust the distribution of urbanresidents’ income of Guangdong province actually, but there is a time lag betweenthem. According to the analysis above, the thesis put forward some advices tooptimize the income distribution adjustment mechanism of social security ofGuangdong province from the collection, management and distribution of socialsecurity fund.