The Influence Of Urban Residents’ Income Gap On Education Investment

With the rapid development of China’s economy, people’s income increases, the standard of living has been rising, but at the same time, the income gap between residents in China is also expanding. Inside the town, the income gap of different income levels showed a trend of increasing; it is not only affecting a variety of urban residents consumption and investment demand, but also has an effect on social harmony and the health of the economy sustained development. Education is an important factor of sustained and steady development of social and economic, it also plays an important role in the formation and change of social class structure, and the impact of individual and family income. Different family incomes will cause different income groups’choice of their children’s education investment. Education is an effective way of human capital accumulation, and human capital largely determines the level of a person’s future income. People with high human capital obtain high income opportunities. Because of the gap between household incomes, children of high income families have more high quality education resources than low-income children, so as human capital level. this caused income disparity of education resources, unequal education opportunity, makes high income family children in a more advantageous position in the competition, their chances of ever attaining high income and possibility are far greater than the children of low-income families, based on this fact and expectations, and due to the constraints of revenue and difficult to substantially improve their children’s education investment, low-income groups may choose to reduce investment in education and even now to reduce loss of income on education expenditure. So high-income families will continue to increase future income streams, and the future income of low-income families will be reduced. The more this rich richer, the poor poorer the more cyclical effect continue to develop, will make the income gap between the various income groups is growing. In this paper, based on the internal class income gap of urban residents and analyzing the present situation and problems of education investment, we adopt normative research and statistics and the method of empirical analysis to explore the influence of urban residents’ different income levels of household income gap which is the Gini coefficient on education investment, and puts forward corresponding solutions in order to promote the development of economic society rationalization operation.