Analysis Of The Factors Affecting The Income Polarization Of Chinese Residents

With the rapid development of China's economy,the problem of distortion of income distribution has become increasingly prominent,and income inequality has been studied by many scholars,but the research on income polarization is very limited.The polarization of income is likely to cause the solidification of social classes and more conflicts in society,which is not conducive to the harmony and stability of society.This paper firstly measures the income polarization of Chinese residents based on the1995-2013 China Household Investigation Data(CHIP),and then analyzes the factors affecting income polarization from the perspectives of index decomposition and regression analysis.The income polarization measurement found that the income polarization level of urban and national residents rose first and then decreased,while the income polarization level of rural residents decreased first and then increased.The level of income polarization across the country is generally higher than that of rural areas,while the level of rural income polarization is generally higher than that of cities and towns.The results of index decomposition show that the change of income polarization is mainly caused by the change of alienation;wage income is an important source of income polarization,and the influence of property income on income polarization is increasing;the contribution between urban and rural groups is the main source of income polarization.The results of the econometric analysis found that the flow of rural residents to cities and towns,increased investment in human capital,and increased employment in higher-income industries help to increase the proportion of middle-income groups,thereby reduce income polarization.