Research On The Effect Of Transfer Expenditure Adjusting Urban-Rural Income Gap Under The Goal Of Common Prosperity

The report of the Party’s 20th National Congress made it clear that the essential requirement of socialism with Chinese characteristics is common prosperity.To achieve common prosperity for all,we must first make the "pie" of the Chinese people bigger and better,and then cut it accurately and fairly through a rational distribution system.We should strengthen the adjustment of redistribution policies,especially improve the precision of social security and financial subsidies,so as to shift to an olive distribution structure with large middle and small two ends.Taking transfer expenditure to adjust the urban-rural residents’ income gap as the starting point,and based on theoretical analysis and empirical testing,this paper puts forward countermeasures and suggestions to alleviate the urban-rural residents’ income gap from a deeper and objective level,in order to make income distribution fairer,narrow the urban-rural residents’ income gap,and accelerate the pace of common prosperity by adjusting redistribution policy tools.Through theoretical and empirical analysis methods,this paper analyzes the nonlinear relationship between transfer expenditure and the urban-rural residents’ income gap from the aspects of social security expenditure and agricultural subsidies,and explores the heterogeneity of the two regulating urban-rural residents’ income gap.First of all,by reading,sorting out and analysis relevant research literature at home and abroad,the connotation and theoretical basis of common prosperity and transfer expenditure are elaborated,and the influence mechanism of urban and rural income gap of transfer expenditure is analyzed in detail,which lays a theoretical foundation for subsequent empirical testing,and the Thiel index is selected as an indicator to measure the urban-rural residents’ income gap.Secondly,in the empirical analysis,this paper selects 31 provincial panel data in China from 2010 to 2020.First,through the threshold effect model,the nonlinear relationship between social security expenditure and agricultural subsidies and the income gap of urban and rural residents is tested,and the following conclusions are obtained: there is a threshold effect based on the degree of urban bias of social security expenditure and agricultural subsidies on the adjustment effect of urban and rural income gap.The positive moderating effect of social security expenditure on urban-rural income gap will rise with the reduce of urban bias.The rise in the level of agricultural subsidies will widen the income gap between urban and rural areas after crossing the threshold as the degree of urban bias narrows.The second is to test the heterogeneity of social security expenditure and agricultural subsidies in regulating the urban-rural residents’ income gap,and obtain: from the income level,the adjustment effects of social security expenditure and agricultural subsidies on different income levels of urban and rural residents are different.Social security spending has a greater impact on low-and middle-income income than on high-income.Agricultural subsidies have a positive impact on low incomes.From the regional level,when the urban-rural residents’ income gap is larger in the eastern,central and western regions,the stronger the effect of social security expenditure in curbing the urban-rural residents’ income gap.Agricultural subsidies can effectively curb the income gap between urban and rural areas in the central and western regions.Finally,inductive analysis is carried out and relevant policy suggestions are put forward: first,the degree of urban bias to weaken transfer expenditure;The second is to increase the supply of social security for special groups such as low-income groups;The third is to improve the intensity and precision of agricultural subsidies;Fourth,accurately arrange transfer funds according to local conditions;Fifth,unblock the two-way circulation channels between urban and rural areas;Sixth,suggestions on improving the efficiency of the use of transfer funds.The following two possible innovations in this article are.The first point is to further deepen the research content.Most scholars have focused on the overall impact of transfer expenditure on urban-rural income disparities,but less nonlinear studies based on specific conditions.This paper takes the degree of urban bias of transfer expenditure as the specific condition,and selects the ratio of urban and rural residents’ transfer income to measure the distribution ratio of transfer expenditure,and uses this as a threshold variable to analyze the nonlinear relationship between social security expenditure and agricultural subsidies and the urban-rural residents’ income gap in transfer expenditure.The second is more precise policy advice.Most of the existing literature focuses on the impact of transfer expenditure on inter-regional income gap,while few scholars study the impact of transfer expenditure on people at different income levels.This paper adopts panel quantile model to study the heterogeneity of social security expenditure and agricultural subsidies in regulating the urban-rural residents’ income gap from different income groups and different regions,so as to make subsequent policy recommendations richer and more accurate.