| The social security which was deeply hoped to address the problem of urban and rural income gap. However, studies in the past, ignored the market-mechanism-led initial distribution and the redistribution of government-led social security, both of which were common profoundly shaped and affected the pattern of China’s urban-rural income gap. And the initial distribution decides the whole income-distribution structure at root. It is hard from the source to solve the problem of urban and rural income gap which caused by the initial distribution, simply rely on function of readjustment of social security redistribution. Even if Social Security is an important means of wealth distribution, but it is after all ultimately subject to the initial distribution and affected by the initial allocation.Based on the above analysis, the research questions of this paper put forward is that on solving the issue of urban-rural income gap, whether the function of the distribution and readjustment of social security is really "failure" or not? And is this "failure" just because of the distorted distribution pattern caused by initial distribution at the root? In the case of the initial distribution situation has improved, will the "reverse" action of the allocation and readjustment of social security be improved or disappear?As a starting point, when this paper study the effect of distribution and readjustment of social security on the issue of urban-rural income gap, did empirical study from the national, regional and inter-level aspect, based on 1998-2013 provincial panel data, using the system GMM method which will ease the endogenous problems between variables, in the empirical model, then study the initial distribution situation was introduced in this paper in order to study its effect whether is the same or not with the allocation and readjustment of social security on solving the problem of urban-rural income gap under different initial income distribution. So we can characterize more clearly the effect and role of the means of the initial distribution and social-security redistribution in narrowing the income gap between urban and rural areas.The study finding as followed:First, the initial distribution on the root causes distortion of income-distribution structure that has led to a "failure" of further readjusting the distribution of Social Security, raising workers’ share of labor income in the initial distribution of situations can play a significant role in narrowing the income gap between urban and rural areas. Compared to purely increase social security expenditure, enhancing workers’ share of income will be more conducive to narrowing the income gap between urban and rural areas. Second, with the improvement of the status of the initial distribution, "reverse" distribution phenomenon of social security is gradually improved and eventually disappear. It is impracticable to put the huge task of addressing the issue of urban-rural income gap over re-regulating the distribution of social security.In other words, only has the initial distribution situation been improved from the source, the role of "reverse distribution" of social security ("failure") can be eased or eliminated.This study correct the deficiency that the previous research and study that only emphasized the initial distribution and bias in one part of redistribution, as well as to solve the problem of income gap between urban and rural area provides a new perspective. This echoes the requirements of the theoretical framework of scholars on over Social Security as a means of redistribution, and its function can only be limited redistribution stage, and the effect of redistribution played must be affected by initial distribution. Including initial distribution in a framework of the relationship of re-regulating of social security distribution and urban-and-rural income gap to do empirical research can deepen the theory and enrich the study of the distribution field of social security. |
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