The Reserch Of Changing Tendency And Influencing Factor Of Chinese Income Mobility

30 years of reform and opening-up, China becomes the second largest economy in the world with rapidly growth. However, income of residents still cannot catch up with the speed of economic development. In early 2013, National Bureau of Statistics announced Gini coefficient of the past decade which was over 0.4. This situation shows our country’s wide income gap. The World Bank’s latest report shows that 1% of Chinese households hold 41.4%of the wealth of the Mainland. In the United States, 5% of households hold 60% of the wealth. The concentration of wealth in China has surpassed the United States. Thus, China has become one of the world’s widest income gap countries. Meanwhile, some scholars have argued that, involving the income mobility, long-term income inequality may not be as terrible as we know. Then strengthening the income mobility could ease the problem of wide income gap in long-term.In this paper, different time intervals income transfer matrix, income transfer matrix based on five-bisection method and income transfer matrix based on K-means clustering are analyzed. Then calculate income mobility index and income flow direction index and explain the changing tendency of our country’s income mobility. In chapter 4, let the change of the income level as the dependent variable, initial income level, age, gender, educational level, occupation type and the respective provinces as the independent variables, and establish a logistics model, analyze the factors of affecting income mobility.The value of income mobility which is calculated by income transfer matrix based on five-bisection method has a significant downward trend as economic growth. It’s exactly the same as the results based on K-means clustering. However, the results of the latter are less than the former. So, we can draw conclusions that our country’s income gap is extremely large, and this gap is gradually expanding with economic development Income flow direction index in most periods is less than 1, indicating that the direction is downward. Total welfare of residents is declining. Initial income level, education tevel, and regional factors have significant effects on income mobility. Gender, age and occupation type have significant effects on income mobility of part of the residents.