Research On The Impact Of Public Education Expenditure On China's Income Inequality

Since the reform and opening up,China's economy has achieved remarkable results,the growth rate of GDP for many years to maintain more than 7%,the people's living standards improved significantly.However,with the rapid development of economy,the problem also appears,including the issue of income distribution which is getting more and more people's attention.China's Gini coefficient in 2003 exceed the warning line of the international gap between rich and poor,the income gap between regions,between urban and rural residents is larger,which indicates that China is facing a more serious income inequality.Over the giniral income gap will have an impact on social stability,is not conducive to sustainable economic development.Therefore,how to alleviate the income inequality has become an important issue for our government to solve urgently.There are many factors that affect the income inequality,which covers many aspects,such as environment,family and individual,among which education occupies an important position.As an important indicator to measure the ability of individuals,education level has a decisive effect on the income of the residents.However,compared to the average schooling years of urban residents and rural residents in China,we can find that the urban resident's average education years is greater than the rural resident's in China.Public education expenditure as part of the fiscal expenditure can reduce the cost of education,and influence the resident's the educational decision.This article will be based on the current situation of our country's economy and education,and use the method of combining theory and empirical research to study the impact of public education expenditure on income inequality.The structure of this paper is as follows: the first chapter introducing the background and significance of this study.Summarize the research ideas,methods and framework,as well as the innovations and shortcomings of this paper.The second chapter is a literature review.Firstly,introduce income inequality from different aspects,including the process of studying income inequality,the measurement method of income inequality and variables which influence income inequality.Secondly,it focuses on relationship between public education expenditure and income inequality.Sum up the conclusions from previous studies about the impact of public education expenditure on educational inequality.The third chapter is the descriptivestatistics analysis of income inequality and public education expenditure.The Gini coefficient is larger than the warning line,which shows that there is a serious problem of income inequality in China.The index value of income mobility between intergeneration indicates that the income mobility between generations is small.The overall development of China's education is good,but there are problems of unbalanced education development between provinces,the level of educational development in different regions is different.The fourth chapter establishes the regression model to verify the impact of public education expenditure on income inequality,covering the whole process of model establishment and analysis.The fifth chapter mainly analyzes the public education expenditure impact on income inequality path.Verify the relationship between residents' education and income,and get the conclusion that the education period and the income of residents are positive correlation.The sixth chapter is a summary of the full text,and presented relevant policy suggestion of according to the preamble.