Relationship Of Income Gap And Returns To Education

The relationship between income and education gap has been one of the hot issues of economics, the overwhelming majority of existing literature study impact of education on income gap. However, in real life, after the widening income gap, it is natural to the needs of a variety of goods will increase, in turn will lead to stratification factors of production such as labor demand, the gap between the price of labor factors of production will gradually increase, education gaps and different labor pay gap by years of schooling rate of return will be a corresponding expansion of the income gap is self-reinforcing. This paper discusses the demand side effect of income disparity in education, income disparity illustrates the internal mechanism of self-reinforcing, to provide a new perspective for the study of the distribution of income for the government to solve the income gap problem targeted policies provide a breakthrough. Research ideas as:Firstly, the construction of the theoretical framework of analysis and the income gap between returns to education relations, theoretical analysis in two steps, the first step:based on consumer behavior, research of income disparity on consumption and consumer layered diversification impact mechanism, the first two-step:based on the behavior of firms, research on labor factors of production consumption stratification influence mechanism; secondly, the use of "China household survey Yearbook" and other data on whether the widening income gap has brought consumer diversification and consumption stratification empirical analysis using CHNS data in different educational levels of the labor force as the object of study demonstrates the impact of consumption on the labor factor of production stratified hierarchical; Finally, the empirical results draw conclusions, and on this basis for the government to solve the income gap problem raised specific policy recommendations.