The Influence Of Public Education Expenditure On The Income Distribution Gap Of Residents

Since the reform and opening up,China's economic development has made great progress.However,the problem of income distribution among residents has also happened.This issue has aroused great concern from the society and has received great attention from the government.At present,China's public education expenditure is growing year by year,and has formed a sufficient scale.According to the theory of human capital,public education expenditure has an impact on the income distribution of residents through the formation of human capital,that is,public education expenditure is an important factor influencing the income distribution of residents,which provides a solution to analyze the income distribution of residents in China.And the effect of public education expenditure on income distribution is not yet given a definite answer.From this point of view,this paper studies the problem of public education expenditure affecting the income distribution of residents.Based on the existing theories such as human capital theory,in terms of the current situation of public education expenditure and income distribution in China,this paper analyzes the mechanism of public education expenditure affecting income distribution.It establishes a model,first of all,this paper divides public education expenditure into three levels: compulsory education,high school education and higher education.It adopts the lagging variable of education expenditure and establishes an empirical analysis model to study the long-term dynamic impact of public education expenditure on income gap.The results show that the impact of public education expenditure on the income distribution is mainly reflected in the scale of investment and the quality of education.When the scale of public education expenditure increases by one standard deviation,the impact of the scale of public education expenditure of high school education on the income gap is the most important,followed by higher education and compulsory education.In contrast,the quality of education increases by one standard deviation.Higher education has the greatest effect on reducing the income gap,followed by high school education and compulsory education.Secondly,in order to grasp the income gap more comprehensively and find its solution ideas,this paper uses the division of the East and the Midwest to examine the impact of various factors of public education expenditure on the income gap.The scale of education expenditure can have a more significant effect on the income gap in the Midwest.The improvement of the quality of public education in the East has a more significant effect on reducing the income distribution gap.Combining the grading and sub-regional empirical results,this paper proposes the following policy recommendations for narrowing the income gap: First,public education expenditure should ensure quality when it is guaranteed,avoid excessive investment,pays attention to the efficiency of human capital formation,as to increase the scale of public education expenditure.Second,on standard about how to allocate public education resources rationally and effectively at all levels of education,we should increase the total investment expenditure of high school education,and improve the quality of higher education.Third,rationally allocate the scale of education expenditure between different regions.With the increase of the total amount of education expenditure,the quality of education in the East,and the scale of education in the Midwest,bring a more positive impact on the narrowing of the income gap.