Research On The Impact Of China's Social Security Expenditure On The Urban-rural Income Gap

To pay more attention to the issue of social equity in development is a new requirement put forward by the Party in the report of the 19 th National Congress of the Communist Party of China.Social security is an important tool for regulating income distribution.It can effectively improve national production and life and promote social equity.In recent years,China's economic and social development has been stable,and the level of national income has also increased.In contrast,the income gap between urban and rural residents has not improved significantly.In view of this,this article attempts to analyze the impact of social security expenditures on the urban-rural income gap.Based on a review of related theories,combining the current situation of social security expenditures and urban-rural income gaps in China,the relevant provincial-level data from 2007 to 2018 are used to construct a panel.The model uses a systematic GMM estimation method to analyze the impact of social security expenditure scale and structure on the urban-rural income gap and regional differences.Based on the conclusions,some suggestions are made to further alleviate the urban-rural income gap in China.The analysis found that the overall urban-rural income gap in China is gradually narrowing,and the urban-rural income gap in the eastern,central,and western regions has gradually increased.Empirical analysis shows that China's social security expenditure helps narrow the urban-rural income gap,and the impact of social security expenditure on the urban-rural income gap is a non-linear U-shaped trend;social security expenditure in the eastern and central regions is conducive to narrowing the urban-rural income gap;From the perspective of the structure of social security expenditures,social insurance expenditures help reduce the urban-rural income gap,while socially-paid disbursement has widened the urban-rural income gap,and the urban-rural income gap is not significantly affected by other social security project expenditures.The urbanization rate has the greatest impact on the urban-rural income gap,which can obviously improve the rural-urban income gap.The increase in human capital investment in the eastern region will help alleviate the urban-rural income gap.From the perspective of the country and the western region,it will exacerbate the urban-rural income gap.The scale of social security expenditure should be appropriately expanded to increase the financial input of rural social security funds;the expenditures of various social security projects should be reasonably allocated,the structure of regional social security expenditures should be optimized,and regional coordinated and stable development should be promoted;the role of urbanization and human capital investment in the urban-rural income gap Corresponding role and improvement of relevant systems of the social security system,to further reduce the income gap between urban and rural areas.