The Impact Of Fiscal Social Security Expenditure On The Income Gap Between Urban And Rural Residents

Since the reform and opening-up,the economy of China has developed rapidly and made remarkable achievements in the word.With the growth of economy,the living standard of residents has been greatly improved.At the same time,all kinds of social public utilities are becoming more and more perfect.However,in the process of all-round social development,there are still some problems that can not be ignored.Among them,the problem of excessive income gap has been a reason which hinder the balanced development of our country,especially the problem of income gap between urban and rural residents.Our government attaches great importance to the problem of income gap and takes various effective measures to narrow the income gap of residents,so as to alleviate social contradictions and maintain the stable development of society.The implementation of social security system is one of the measures taken by the government.The essence of social security is to maintain social fairness and justice.It has the function of distribution and redistribution,which is related to the interests of all the people.The progress of society is accompained by the increasing demand for social securiity.After decades of development,chinese social security system has gradually matured,the projects become more specific,the scope has a wider coverage than before.Correspondingly,social security expenditure grows.It can be seen that social security plays an important role in the national income distribution,and its importance in regulating the income gap of residents is increasingly prominent.Theoretically,social security expenditure should play a role in income distribution.However,whether social security expenditure actually plays a positive role in reducing the income gap remains to be considered.This paper attempts to explore the effect of fiscal social security expenditure on the income gap between urban and rural residents in Zhejiang Province.Based on the analysis of the existing literature and the definition of relevant concepts,this paper expounds the mechanism of social security affecting income distribution.Then,simply combed the development process of social security system in China and Zhejiang Province.Next,according to the relevant data,this paper makes a descriptive analysis of the current situation of the fiscal social security expenditure and the income gap between urban and rural residents in Zhejiang Province.After having a corresponding understanding of the current situation,the article establishes economic model,uses the methords of OLS model,fixed effect model and random effect model to analyze the effect of social security on the income of urban and rural residents accurately.Finally,some targeted suggestions are proposed.This paper mainly draws the following conclusions: first,the total amount of fiscal social security expenditure in Zhejiang Province is increasing year by year,but the proportion of fiscal social security expenditure in general public budget expenditure is still to be improved compared with the national level.Second,the expenditure structure of fiscal social security in Zhejiang Province is obvious.From the perspective of project structure,there is a large difference in the distribution of expenditure among projects;from the perspective of regional structure,there is a certain difference in the level of fiscal social security expenditure of each city because of the different economic development level and institutional background;from the perspective of urban and rural structure,due to the lack of relevant data on urban and rural fiscal social security expenditure,this paper uses the expenditure of lowest life gurantuee to instead.It is found that in terms of the total expenditure mainly flow to rural areas,the monthly per capita compensation gap,that is,the per capita fiscal expenditure level of urban residents is far higher than that of rural residents,but the relative gap is narrowed from the whole.Third,the fiscal social security expenditure play an important role in regulating the income gap between urban and rural residents.Fourthly,from the perspective of social security expenditure,the subsidy and social assistance expenditure to social insurance fund can reduce the income gap between urban and rural residents,while the effect on the expenditure of administrative institutions is not significant.Fifthly,the fiscal social security expenditure can help to narrow the income gap between urban and rural residents in both developing counties and developed counties,and the regulating effect in developing counties is better than that in developed counties.Sixth,the content of urban biased social security expenditure has a negative effect on the income gap between urban and rural areas.