Which Kind Of Social Security Is More Effective In Narrowing Urban-rural Income Disparity?

The Fifth Plenary Session of the 19th CPC Central Committee included common prosperity into the goal of 2035.However,at present,China’s urban-rural income disparity makes a high contribution to the overall income disparity.Effectively managing the urban-rural income disparity has become the key way to achieve common prosperity.Social security has a stronger targeted and direct role in the narrowing of income disparity,and it is an important means to narrow the urban-rural income disparity.On the one hand,the central government has vigorously optimized the performance evaluation objectives of local governments,and promoted the inclination of fiscal social security expenditure to rural areas in recent years.On the other hand,the State Council issued several documents to promote the integration of urban and rural social security systems and promote the social security system from "inclusive" to"fair and inclusive" recently.Then,based on the two types of social security policies of fiscal social security and social insurance,which one is more effective in narrowing the urban-rural income disparity?How do various social security policies behave in different regions?What are the reasons for the differences in policy effects?What are the contributions of various social security policies to the urban-rural income disparity?All deserve further discussion.Firstly,this thesis combs the literature around the research on urban-rural income disparity,and it takes the relationship between fiscal social security,social insurance and urban-rural income disparity as the main line.By summarizing and commenting on the previous literature,this thesis puts forward the research ideas and compensation methods.Based on the Cobb-Douglas production function and theil index,this thesis constructs a mathematical model to analyze the impact of fiscal social security and social insurance on the urban-rural income disparity.At the same time.The analysis tends to think that fiscal social security and social insurance can narrow the urban-rural income disparity.Secondly,describing typified facts and correlation analysis are carried out.In terms of urban-rural income disparity,the theil index is used for calculation.In terms of fiscal social security and social insurance level,the per capita actual fiscal social security expenditure and per capita actual social insurance payment are used for calculation,and then it verified the correlation between the level of social security,social insurance and urban-rural income disparity.Besides above,GDP is included in the analysis to measure the proportion of fiscal social security expenditure and social insurance payment in GDP as a robustness test.Based on the above calculation,this thesis makes an empirical analysis.On the one hand,this thesis introduces the functional forms of Spatial Dubin Model(SDM),Geographically and Temporally Weighted Regression Model(GTWR)and Panel Smooth Transmition Model(PSTR),and it analyzes and tests the spatial correlation.On the other hand,it divides the basis function of social insurance into endowment insurance,medical insurance and other social insurance to carry out heterogeneity analysis.Thirdly,based on the above analysis,this thesis reports the benchmark empirical results,robustness test and heterogeneity analysis,which verifies the robustness of the empirical results and carries out further discussion.The research shows that the inter provincial urban-rural income disparity has a positive spatial correlation.The fiscal social security effectively narrows the urban-rural income disparity,and the social insurance has a converse effect on narrowing the urban-rural income disparity.Using GTWR,PSTR and Shapley value decomposition,further research shows that the reason for the above situation is that the fiscal social security can well adapt to the process of labor market,while the endowment insurance system is difficult to adapt to the process of labor market,and the contribution of endowment insurance to the formation of urban-rural income disparity is high.Finally,based on the above analysis,this thesis summarizes the theoretical and empirical results of the article,and it puts forward corresponding policy suggestions from three aspects:strengthen fiscal social security expenditure,improve the social insurance system and take advantage of the level of labor marketization.