Research On The Present Situation, Causes And Measures Of Income Distribution Gap Of China

Income distribution is not only related to the vital interests of the people, more related to economic development and harmonious development of our society. If the income gap is controlled within a certain range, it is conducive to economic development to a certain extent. But if the income gap is too large, it not only hinders the economic development, but will seriously restrict the further deepening of China’s reform and it is not conducive to social stability and comprehensive, coordinated and sustainable development, which determines the necessity of the income distribution gap.There are five parts, the first part introduced the paper’s purpose、significance、research methods and study abroad. The second part outlined the history of the reform of income distribution since the founding of China; this part also evaluated the effect of income distribution reform. The third part introduced systematically the theory of old classical school of economics about income distribution and modern western theory of income distribution. The fourth part analyzed the current situation of China’s income distribution gap through introducing the urban-rural income gap, regional income gap and the income gap between the industries. Next, it analyzed the reasons of income distribution gap, including natural historical factors, institutional factors and policy factors. In addition, the paper analyzed the impact of the income distribution gap for the economy and social stability. The last part presented the fiscal policies and specific measures of income distribution gap in the Initial distribution, redistribution and third distribution, according to the level of China’s economic and social development.