Research On The Relationship Between Social Security System And The Unfairness Of Urban And Rural Income

In China,the Gap between urban and rural area was increaing rapidly since 1990 s,and was increasing slowly before.After 2005,the situation got better.The consistance of Gap between urban and rural after 2005 and the decreasing in some provinces proved the effectiveness of reallocation policy of Chinese Goverment carried out recent years.In earlier years,China Goverment put too much emphosis on "GDP Addition" and "the early rich policy",which resulted in such a big Gap no matter compared to the National world or 1980s' China.As we all know,a big Gap between urban and rural has very bad impact on society,can inccur many social problems,and eventually affect consistent growth.As a result,the Goverment after "the 18 th conference" put more emphosis on fairness and "income reallocation".Their policies covers more earas in Western in hope of improving Western economic growth,decreasing the Gap between West and East.Now,the main focus of Chinese Goverment is whether we can achieve the "overall richness" target set about 30 years ago.The decreasing of Gap between urban and rural is very important to Chinese Goverment,whose more than 70% resident is farmer.Because of the decay of the "population bonus",chinese growth micrcle will no longer maintian,so the social security system has to play more important roles as "income adjustment".In order to have a full understanding of what effect the Chinese social security policies had in the past or should have in the future,and how these effect aechived,we must study it very specifically.This article is about empherical study of the Gap between urban and rural and Chinese security system,on the basis of panel data of Chinese 30 provinces in 1995~2013,using FE model and GMM.The study find that: Chinese security system has obevious effect to the Gap between urban and rural.In different periods,the security system has different effects,though the difference is very obevious,the ways the effects take place are logically consistant.In Chinese Security System,the Pension Security dramatically decreased the Gap,the Unemployment Security dramatically increased the Gap,and the Medical Security is obscure.In different periods,before 2003,all kinds of Security System dramatically increased the Gap due to the blankness in rural areas,after 2003,they were began to decreaing the Gap because of Goverment policy emphsis shift.The structure of Chinese Security System also has important effect: if the rural area weighs more than urban area,the Gap decreases,and increases on the conturary.I also found that,the marketalization also effect the Gap in a way that affected the Security System somehow.Because of the Gap in the marketalization,this factor tended to increase the Gap between urban and rural.