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Research on the Correlation between Education Level and Income Gap

Author: ZhangYuChen
Tutor: SunDeMei
School: Harbin Engineering University
Course: Educational Economy and Management
Keywords: Education level The income gap Correlation
CLC: G520
Type: Master's thesis
Year: 2011
Downloads: 30
Quote: 0
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Abstract

With the rapid development of reform and opening-up, the economic growth of China has been a focus of the world attention.But the gap between the rich and poor has been widened obviously because of the rising per capita income. It’s so difficult to handle.This can be proved by the China’s recently. The rising wealth gap is everywhere we look now, not only the different social stratum, but also all kinds of the sectors and places. So it attracts much more attention. The underlying reason of this phenomenon maybe the irrational distribution system and some resource allocation in question. If this problem becomes much worse there will be a serious consequence of our society in the future.We must handle this difficult problem realistically, or it will delay the harmonious socialism construction.The income gap should be shorten by the way of controlling the income distribution. There are so many ways which are researched in academic circled. But in may point of view, the gradual stock of human capital maybe the crucial one which is based on the education. The knowledge is the key factor which can generate the social wealth in the economic system of modern China. Knowledge should be interpreted as the educational capital which is the most important factor to the formation of the human capital. (Therefore, we can regard the basic factor of the income distribution as the level of the people’s educational situation.) The conception of the educational capital stock here is to be used for indicating the length and the level of people’s education. The education is divided into three levels, low, middle and high in this paper. The level of income is divided by the educational level of laborers through my study. The people who accept the different levels of education will be influenced by their income. Obviously, the income level of labourer is determined by the quantity of the educational capital stock. It’s so important to us that promoting the people’s the educational capital stock level which is order to improve the unfairness of income distribution. The reality of our society show us the people less-educated get the lower-income.The manual workers can’t get the fair compensation so as to they are unable to invest enough money to their children’s education.That can create a vicious circle.For the above reasons, Accounting Methods of the educational level will be worked out with care and detail in this paper. Then we can figure out the size of the educated output for our society and the per capita income.To start with the education level, I analyse the relationship between the education level and the income condition in depth in order to assure the equity of education from origin..Educational equality is the basic of social equality and the footstone of construction harmonious society. Building the educational equity actively in the harmonious society can shorten the income gap and be beneficial to accomplish the fairness of social security. Only in this way can we make a significant contribution to construct a harmonious socialist society.

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