Differential Analysis Of The Impact Of China’s Financial Development On The Income Of Urban And Rural Residents

The report of the 20 th National Congress of the Communist Party of my country proposes to insist on more pay for more work,encourage hard work to get rich,promote fair opportunities,increase the income of lowincome earners,and expand the middle-income group.At the current stage,my country has achieved a comprehensive victory in the fight against poverty,and after more than 40 years of reform and opening up,my country has become the world’s second-largest economy,and the level of financial development has been greatly improved.However,there are still problems of unbalanced and insufficient development,and the income gap between urban and rural residents is relatively large compared with developed countries.The unbalanced distribution of financial resources leads to higher incomes for urban residents compared with rural residents,which leads to the widening income gap between urban and rural areas.Financial development can effectively increase the income level of residents,but my country’s social credit system is not yet perfect,resulting in uneven distribution of social funds,and an excessively high-income gap will affect residents’ yearning for a better life.Therefore,exploring the relationship between financial development and residents’ income can help the market improve the income of urban and rural residents at the macro level,and can also better help improve the financial market.Therefore,the research content of this paper is as follows:Firstly,financial development is divided into formal financial development and informal financial development;secondly,quantile regression and mean regression are used to explore the impact of formal financial development and informal financial development on the income of urban residents with the help of panel data from 31 provinces and cities in my country.,the difference in the impact of rural residents’ income and the income gap between urban and rural areas;then,combined with the quantile regression coefficient map,explore the economic reasons behind the differential impact of formal financial development and informal financial development on urban and rural residents’ income;finally,through empirical analysis,The research conclusions were drawn,and relevant suggestions were given in combination with my country’s current national conditions.The research conclusions are as follows: First,the development of formal finance has a significant promotion effect on the income of both urban and rural residents,but the promotion effect on the income of urban residents is stronger than that on the income of rural residents and thus causes a significant income gap between urban and rural residents.Second,the development of informal finance has a significant effect on promoting the income of rural residents,but not on the income of urban residents,thus narrowing the income gap between urban and rural residents;third,fixed investment,labor force,and financial The six variables of expenditure,urbanization level,industrial structure,and economic development level have different impacts on the income of urban and rural residents.To sum up,to narrow the income gap between urban and rural residents,it is necessary to speed up the reform of the financial market,improve and solve the problems of uneven distribution and differentiated treatment of urban and rural residents’ income in the process of financial development,and try our best to ensure that urban and rural residents enjoy fair and reasonable To the benefits and services provided by financial institutions,and strive to achieve the synchronization of residents’ income and my country’s economic growth.