The Effect Of The Aging On The Income Inequality

The aging society is a process that the proportion of the elderly population in the total population continues to rise.On the whole,the relative increase of the number of the elderly makes the social population structures appear old and enter an aging society.In our country,the evolution of the aging has become irreversible.The level of income inequality in our country has been rising and falling since the beginning of the 21 st century,but it is still at a high level.Aging has changed the relative size of different age groups.Because different age groups have different levels of the income inequality,aging has had a certain impact on income inequality.This paper obtains the survey data of 2002,2008 and 2013 from China Family Income Project Survey Database(CHIP),and starts with the income determination equation to study the impact of aging on income inequality.In order to figure out the impact of changes in demographics on income inequality,The paper decompose income inequality into its contributing factors at specific points.The paper use regression-based inequality decomposition to decompose inequality and classify it as rural,urban and rural-urban groups according to the questionnaire,and regress the income determination equations of each category for each year separately.Then using the regression results of the income determination equation to calculate the contribution rate of aging to the total income inequality,we analyze the impact of aging on the total income inequality.Relatively speaking,the contribution of aging to the increase of income inequality is more in rural areas than urban and rural-urban groups.That is,there is no significant relationship between the changes in population structure and the increase of income inequality in urban and rural-urban groups.Although the analysis shows that the contribution of aging to income inequality is not large,the increase of inequality in total income does indeed be promote by aging.Therefore,it is necessary to adopt some policy measures such as extending the retirement age and promoting the reemployment of the elderly.