Tolerance Of Income Distribution Gap:Explanation And Judgement Of Middle Income Trap

This study mainly analyzes the problem of income distribution gap from the subjective point —the tolerance of income distribution gap.By studying the tolerance of income distribution gap,and based on the Kuznets Curve and "Middle Income Trap" theory,we took an in-depth discussion to this issue whether or not China caught in the "Middle Income Trap".The main research methods of this paper are multiple linear regression and threshold regression methods.Firstly,we study the tolerance of income distribution gap,let the public to estimate the income of the six representative occupations,then calculate the Gini to measure the population's "acceptable income gap",which is the tolerance of income distribution gap.Through the multiple linear regression method,we analyzes many factors that may affect the tolerance of income distribution gap and finds that the tolerance of income distribution gap is mainly affected by individual subjective perception variables such as perceived income gap,individual income fairness perception,fairness cognition,expectation,etc.The further away from the city,the higher the tolerance,the higher the degree of receiving unofficial information,the higher the tolerance.Then through the threshold regression and 27-year macro-data between 1990 and 2016 in China,we found that the value of the economic growth rate-Gini coefficient is 0.465.According to the current economic development in China and theoretical analysis,it was found that in 2004 China was in the dangerous of being trapped in " Middle Income Trap”.However,due to the high tolerance of the people in the income distribution gap at that time,China did not fall into the trap,and remained the rapid economic growth of three years.By 2007,China began to plunge into the "Middle income trap." Until now,China is still in the " Middle Income Trap "stage.Then,by analyzing the general situation of the public tolerance of income distribution gap in the current society,we find that the current income gap is still high and more than half of them are still in a low tolerance of the current income gap.Therefore,currently China does not have the conditions to cross the "Middle Income Trap".After that,this article briefly analyzes when it is possible to cross the "Middle Income Trap" and provides some policy suggestions and ideas for crossing "Middle Income Trap".