The Effect Of The Government Public Expenditure To Resident Income Mobility

The problem of Income inequality has always been the hot issue being concerned. Many scholars measured income inequality from the view of income gap. But it is not enough to study the size of the income gap, we need to consider income mobility, which is from the viewpoint of equality of opportunity to measure the problem of income inequality. The government’s public role goal is to realize the opportunity equality in the process of economic development and income distribution, which is especially, emphasizes opportunity equality to access to education and basic medical and health. It has very important positive significance to improve the distribution of income inequality.First of all, in this paper, it is on the basis of the classical literature at home and abroad, and exposits the concept of income mobility and the three government public expenditure, Education Expenditure, Social Security Expenditure and Medical and Health Spending. In addition, this paper exposits the theory of social classes and the social mobility, the relationship of income mobility and equality of opportunity, which lay the foundation for later study. And then, it analyzes the influence of the government public expenditure on Education Expenditure, Social Security Expenditure and Medical and Health Spending to Income Mobility and put forward the research hypothesisSecondly, this paper on the basis of data which is combination the data of China Health and Nutrition Survey(CHNS) and China Statistical Yearbook( CSYD) and depend on theory of Multilevel Modeling, chose the last year income levels, age, gender, whether he is urban residents, whether he married, whether he have received higher education as control variable, to analysis the effect of government public expenditure to Multilevel Modeling by means of building Multilevel Multinomial Logit Model.This paper reached the conclusion:(1) In 2000-2004 and 2004-2006, the Education Expenditure do not increase up and down Income Mobility, rather than it solidify the income levels, lower the Income Mobility. In 2006-2009 and 2009-2011, Education Expenditure increased the up Income Mobility, and effect is increased.(2) Social Security Expenditure can increase Up Income Mobility.(3) In 2000-2004 and 2004-2006, the Medical and Health Spending can increase Up Income Mobility, however, in 2006-2009 and 2009-2011, the Medical and Health Spending can lower Income Mobility and solidify the income levels.Finally, in order to optimize Income Mobility, this paper through mechanism of the effect of Education Expenditure, Social Security Expenditure and Medical and Health Spending to the Inter-temporal Income Elasticity, then put forward policy recommendations: 1. On the Education Expenditure: continue to expand Education Expenditure and allocation of education resources reasonably; 2. On the Social Security Expenditure: complete the social salvage system on our rural areas; 3. On the Medical and Health Spending: continue to expand coverage of the medical insurance and guiding of the use of high-tech medical services.