Research On The Impact Of Household Demographics On Income Levels And Gap

The issue of income is crucial to whether our country can achieve the second centenary goal,achieve the level of per capita national income reaching the level of moderately developed countries and common prosperity.At present,China is not only in a critical period of economic development,but also at the threshold of demographic transition.Changes in household demographics are an important factor affecting income levels as well as income disparity.Therefore,this paper uses the 2018 China Family Panel Studies(CFPS)to explore the impact of household demographics on income levels as well as income gap.The impact of household demographics on income levels comes primarily from the number of children in the household as well as the number of elderly people.By fitting OLS regressions and instrumental variables quantile regressions to the equation determining the income per labor of households in 2018,it is found that the number of children to be supported in the household has a dampening effect on the labor income of the household,i.e.the squeezing effect of children on the labor efficiency of the labor is greater than their incentive effect on the labor time of the labor;The number of older members in the household has a dampening effect on labor income;and the labor income is significantly lower in one-and two-generation households compared to multigenerational households of four or more generations.However,these influences are not significant in households at higher income levels,where labor income is influenced only by education and location factors.The impact of household demographics on income gap was further explored.Analysing the contribution of household demographic factors to the labor income gap through Shapley value decomposition and quantile regression decomposition,it is found that: intra-group gap in household structure is the main source of explanation for the overall income gap in China;the number of children to be supported and the number of elderly in the household contribute a smaller share to the per capita income of the household working population;differences in characteristics are the main cause of the urban-rural labor income gap,but their generation of The labor income gap decreases as the level of labor income rises;coefficient differences,on the contrary,increase as the level of labor income rises.In this regard,this paper puts forward the following suggestions: continue to promote the reform of the taxation system and continuously improve the income distribution system;formulate relevant laws and regulations to provide family policies for the supply of labor for families with many children;provide public services to equalise the social security system;further improve the stock of human capital in the labor force and increase investment in education to raise the labor income level of grassroots groups and narrow the labor income gap.