Impact Of Fiscal Decentralization、Education Expenditure On Urban-rural Income Gap Under

The issue of income gap between urban and rural residents has always been the focus of discussion and attention.It is also the tireless research focus of scholars to find out the causes and countermeasures of the income gap between urban and rural residents.Scholars give explanations from a variety of perspectives,such as the unbalanced development between urban and rural areas under the dual system of urban and rural areas,the high yield under monopoly industries,urbanization and financial development.However,from the perspective of factors of production that affect the income level,the difference in the distribution of the most essential factors of production among individuals or groups is an important factor affecting the distribution of income.Education resource allocation is another major aspect.Education is the source of accumulation of individual human capital.In the century in which the knowledge-based economy is dominant,education determines to a certain extent the distribution of social income.In addition,in order to solve the problem of continued widening income gap between urban and rural residents,the central government has increased the financial input in rural areas through a series of "benefiting agriculture and supporting agriculture" policies and the majority of rural residents have also obtained more benefits from these policies.As the primary responsible person and executor of local government as the management function of the area,it is just a matter of fiscal decentralization that the problem of income gap between urban and rural residents can reveal the behavioral incentives of local governments,so as to provide a better analysis of the institutional causes of the income gap between urban and rural residents Perspective.This article begins with the introduction of the background and significance of research topics,research methods,research innovation and deficiencies,literature review and concept interpretation.Then,this paper analyzes the current situation of the fiscal decentralization,education expenditure and the income gap between urban and rural residents in our country,and provides a realistic background for further analysis of the internal relations among the three.Furthermore,under the institutional framework of fiscal decentralization,this paper explores this theme through the explanation of its impact mechanism from the perspective of education expenditure,and empirically tests this by using the provincial panel data from 1999 to 2014 through the dynamic model and panel threshold model Relationship,come to three major findings.First,the income gap between urban and rural residents has the characteristics of inertia,that is,the income gap between urban and rural residents in the previous period will have a greater impact on the current income gap.This shows that the income gap between urban and rural areas has a dynamic self-reinforcing capacity and narrows the gap between urban and rural residents The income gap needs to be targeted as soon as possible in order to avoid the worsening effect of the continuous widening income gap between urban and rural areas.Second,the empirical results of the dynamic panel model show that fiscal decentralization and education spending significantly increase the income gap between urban and rural residents.The empirical results of panel threshold model further show that there is not only a simple linear relationship between education expenditure and income gap between urban and rural residents,but there is a double threshold effect based on fiscal decentralization,that is,when the degree of fiscal decentralization is at a low level,The increase of education expenditure will widen the income gap between urban and rural areas.When the level of fiscal decentralization reaches a certain threshold,education expenditure can play a very significant role in reducing the income gap between urban and rural residents.This shows that just by increasing the scale of education expenditure can not effectively reduce the income gap between urban and rural residents,the key lies in correcting the incentive structure of local governments,seize the appropriate degree of decentralization,local governments give the right to match the financial rights and increase the rural areas Education investment,promote the integration of urban and rural education,in order to curb the expanding trend of urban-rural income disparity.Thirdly,the real GDP per capita,the degree of opening to the outside world,and the urbanization rate all contribute to the narrowing of the income gap between urban and rural residents,while the competition among the government forces the income gap between urban and rural residents to widen.Finally,this paper puts forward some policy suggestions from the aspects of increasing investment in education in rural areas,rectifying the incentive structure of local government,and then narrow the income gap between urban and rural residents in China.