Research On The Influence Of Social Security Expenditure For The Income Gap Between Urban And Rural Residents Of Gansu Province

Social security system is a redistribution system of social wealth with government as its main body,it is a basic social and economic system of modern state that used to compensate for the unfair revenues generated in market competition. But in real life,whether the social security operating mechanisms plays a effectively role in regulating the distribution of income is still a problem to be studied.This paper elaborated on the theory of social security expenditure on income distribution of Western Economics and Marxist classic theory,then in the view of social security expenditure have different effects on three social capital(physical capital, human capital and social capital)for urban and rural residents,the paper analyzed the mechanism that social security expenditure narrowing the income gap between urban and rural residents.Analysising the actual social security expenditures and income gap situation of Gansu Province,the paper found that with social security expenditure increasing year by year,relative income gap between urban and rural residents has lessened,and the absolute gap is still widening, social security spending plays limited role on income gap. To further examine the impact of social security expenditure on urban and rural income gap in Gansu Province,the paper analyzed the factors that affect the income gap between urban and rural residents, and selects urban-rural income ratio, the level of social security expenditure, the level of economic development, urbanization rate and the industrial structure as indicators, using annual data1990-2013 of Gansu Province made a series of empirical analysis. The empirical results show that social security spending to narrow the income gap of urban and rural residents does have a positive effect, but the effect is not obvious, while the level of urbanization regulates the income gap between urban and rural residents is obvious. The paper accounts that our country's urban and rural social security system is related to the poor redistributive role of social security expenditure, and also related to the low levels of social security coverage which caused by low levels of social security expenditure, and therefore,proposed proposales to enhance social security expenditure adjust the income gap between urban and rural residents,which are improving the social security system in rural areas and increasing social security expenditure.