Research On The Measurement And Decomposition Of Chinese Residents' Income Polarization

Over the past 40 years of reform and opening,China's economy has developed rapidly,but with the deepening of economic development,the income distribution gap between China's residents is also expanding and becoming more and more serious.Different scholars have proved the fact that the income gap widens from all aspects,and the rational distribution of income is a people's livelihood issue that our country needs to focus on.Using the micro data from 2010-2016 in the CFPS database,this paper uses the nuclear density function curve and the Lorenz curve to describe the dynamic change process of income distribution among Chinese residents.Then measure the change smaller middle-income group in recent years,we can find that the proportion of middleincome groups is declining,which shows that the proportion of rich and poor people is increasing,polarization has become more and more intense.In contrast,the decline in the proportion of middle-income groups in rural areas is the most severe.To measure the degree of income polarization further accurately,this paper measures the income polarization of the whole country,urban and rural residents respectively.Empirical analysis shows that China's residents have shared the fruits of economic development,income levels are growing,but income distribution is not equal,high-income groups than low-income groups to share more economic development results,which caused the income polarization is becoming more and more serious,although the recent growth rate has slowed down,but cannot change the overall trend.In order to better understand the causes of income polarization and the contribution of various sources of income to the change of polarization,this paper breaks down the polarization index of national residents,urban residents and rural residents based on the identity-alienation framework and income source,according to the calculation results,income structure is the main cause of income polarization;Therefore,this paper thinks it necessary to increase the proportion of middleincome groups,increase the income of the poor,promote urban and rural development,raise the wage income of residents,and arrange the use of government transfer payments rationally,so as to reduce the polarization of residents' income.