An Empirical Study Of The Impact Of Financial Education Expenditure On The Income Gap Between Urban And Rural Areas In Shaanxi Province

Since the reform and opening-up,the development of economy improves people's income levels and living standards,but not all people enjoy the same degree of the fruits of the reform and opening-up policy,the inequality in income distribution is widespread among the urban and rural areas,the income gap between urban and rural residents was expanded to 3.33:1.The human capital theory points that,receiving education can change the individual differences in endowment resources,increasing human capital accumulation,improving the ability of low-income families to obtain high incomes,and ultimately the wage gap between different individuals endowments shrink.Government is the major investor of public edution,it should make the poor areas to be the focus of developing education,increasing the public education expenditure,and reducing the burden of low-income family to support the childem to school,improving the distribution of educational resources comprehensively,making all school-age children a equal access to receive education,and it is very favorable to narrow the income gap between urban and rural economic development.This thesis attempts to explore if there is no necessary link between urban-rural residents' income gap and the scale of investment in public education under the Shaanxi Provincial urban-rural dual economic structure,and if public expenditure scale expanding on education can narrow the income gap,and analysis if the current public expenditure policy on education is reasionable and effective in improving Shaanxi urban and rural income distribution.The main content of this thesis consists three parts:the first part is the summary of domestic and foreign research dynamic and theoretical basis,mainly includes the financial expenditure theory,human capital theory,the dual structure theory and the income distribution theory.The second part is the mechanism analysis and statistical analysis,this thesis mainly discusses the fiscal expenditure on education impact on the mechanism of human capital,human capital promotion impact on income distribution mechanism and the fiscal expenditure on education impact on income distribution mechanism;We also analsis the situation of fiscal expenditure on education and income gap between urban and rural areas in shaanxi province and the statistical analysis was made on the relationship between them.The third part is the empirical test,this paper selected the statistical data of Shaanxi province from 1982 to 2014,selecting the Theil index to measure the income gap between urban and rural areas.And the explanatory variable includes regial GDP,educational public expenditure,urbanization level and average education attainment.using the time series model,using the unit root test,cointegration test,impulse response function and variance decomposition analysis method to find out the relationship between fisical education spending and income gap between urban and rural area of Shannxi province.The result shows that the education of shaanxi province between fiscal expenditure and the income gap between urban and rural areas has significant negative correlation,the expansion of fiscal expenditure on education as a share of GDP can effectively narrow the income gap between urban and rural areas;And fiscal education expenditure impact to Theil index produced by the reaction is relatively small,the fiscal expenditure on education for the Theil index pulse transfer has more significant,and more persistent effect,but the impact is limited,only rely on education to narrow the urban-rural gap between the rich and the poor are often strength is limited,in order to fundamentally change the situation of urban and rural income gap is too large in Shanxi province should adopt flexible and varied policies and measures to increase rural incomes.According to the current situation of the income gap and education development of Shaanxi province and the result of the regression analysis,we propose to expand the scale of investment in public education,and to broaden the sources of education fund,to increase the total amount of education transfer payment,to improve the trasfer payment system,and to optimize the internal spending structure of each education level and to give focus on the rural vational education.