The Effect Of Social Security Expenditure On Residents’ Income Gap

With the sustainable development of China’s economy,because of inequality in the distribution of production factors,the income gap as a whole shows an expansion trend,the income gap too large will cause a series of social problems,therefore,the study of income gap is of great practical significance.Social security as an important means to adjust the income gap,the expenditure structure of the social security has an important impact on income gap,Different social security expenditures have different effects on the adjustment of residents’ income gap,optimization of social security expenditure structure is conducive to promoting income equality.This paper first introduces the social security expenditure structure and the income gap’s Relevant theoretical basis,trying to reveal the structure of social security expenditure’s changes Internal mechanism on the residents income gap.In order to test whether the theory and the reality are consistent,this paper uses the relevant statistical data of 1998-2014,combs the statistic caliber of the unified social security expenditure structure,and uses unit root test to achieve an conclusion that the social security Income structure and income gap between have long-term stable relationship,on this basis,the social security expenditure structure and income gap Granger test,found that changes in social security expenditure structure is the Granger causes of changes in household income gap,The change of gap is the Granger reason of social security expenditure structure change.Finally,by the impulse response function and variance decomposition,we can see that the positive impact of the proportion of social insurance subsidy expenditure and social welfare relief expenditure on the income gap plays a positive role in regulating the short-term,while the proportion of administrative units in retirement expenses Impact on the income gap plays a reverse adjustment role;long-term social welfare expenditure ratio of the positive impact on the income gap plays a positive role in regulating the proportion of social insurance subsidy expenditure,the proportion of administrative units of retirement expenditure The impact on the income gap from the reverse adjustment,but this effect is weak.Based on the above analysis,it can be concluded that the change of social security expenditure structure has an important impact on the income gap of the residents.In this paper,the following policy recommendations are put forward: n short time,increase the ratio of social welfare expenditure,reduce the proportion of social insurance subsidy expenditure,reduce the proportion of social welfare expenditure,and reduce the proportion of retirement expenses in administrative units;The conclusion of this paper has important practical and theoretical significance to optimize the structure of social security expenditure and promote the healthy development of social security system.Short-term increase in the proportion of social welfare spending,social security subsidies,reduce the proportion of retired administrative expenses;long-term increase the proportion of social welfare expenditure,reduce the proportion of social insurance subsidies,the proportion of retired administrative expenses.The conclusion of this paper has important practical and theoretical significance to optimize the structure of social security expenditure and promote the healthy development of social security system.