The Impact Of China's Income Inequality On Economic Growth From The Perspective Of Material Capital And Human Capital

At present,the income gap of our country is getting bigger and bigger,and the voice of shortening the income gap in the societ y has been constant.However,the influence of the income gap on the economic development has not reached the conclusion.Therefore,it is important to stud y the impact of the income gap on the Chinese econom y.On the basis of reading the relevant literatures at home and abroad,this paper examines the influence of the income gap on the economic impact of human capital and materi al capital.First,the theoretical stud y finds that the widening income gap can increase the accumulation of material capital,but not conducive to the accumulation of human capital.The impact of the widening income gap on the economic development mechani sms and results varies b y different stages.Based on the data of China from 1986 to 2015,this paper constructs three models of Cobb Douglas production function,human capital function and material capital function.The empirical results show that with the sustainable development of China's econom y,the marginal rate of return of human capital graduall y increased,while the marginal rate of return of material capital graduall y decreased.China's current widening income gap makes more negative impact on huma n capital than the beneficial impact on ph ysical capital,so as this phenomenon continues,it will bring a negative impact on China's economic and health y development.In the end,this paper puts forward some policy suggestions on China's economic development...