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Study on Poverty Degree of Income Distribution Gap

Author: LiLi
Tutor: MuHuaiZhong
School: Liaoning University
Course: Population, Resources and Environmental Economics
Keywords: Income distribution gap Gini coefficient Poverty degree
CLC: F124.7
Type: PhD thesis
Year: 2012
Downloads: 735
Quote: 1
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Abstract


The distribution of income is an important step of social production. The incomedistribution theory is deepening with the development of the economic theory. To ourcountry and even the world, the gap of the income distribution is one of the key problemsrelated with human survival, social stability, and economic sustainable development. Thecorrect measure of the degree of the income distribution gap is the important basis toformulate related economic policy. Poverty is one of the most serious challenges abouthuman survival and social development. About the study of the income distributiontheory, the influence of poverty to the income distribution gap should not be ignored.Since the reform and opening up in China, the development of the overall economichas remarkable achievements. While the income distribution gap increasing. To Ginicoefficient which is the base index to measure income distribution gap, the figure of ithas been beyond the tipping point. Meanwhile, China’s poverty is still serious, andappears new characteristics in modern time. The impact of poverty to the incomedistribution gap has also presented new changes.In short, to our country and the whole world, poverty is important aspect of theincome distribution gap between theory and empirical analysis. So it is necessary tostudy the degree on poverty influence the income distribution gap.In the related studies about the relationship of income distribution gap and poverty,most international and domestic academics analysis the influence of distribution gap topoverty. While, there has seldom solutions from the contrary view, especially about thequantitative analysis.Based on the above understanding, this issue chooses the influence degree ofpoverty on the income distribution gap as the main direction and makes some exploratoryresearches.This issue inspects the influence degree of the income distribution gap from the view ofpoverty, and set up a series of metrics, some of the main indexes including: accumulativepoverty gap rate, Gini coefficient of poor population, and absolute or relative poverty rateof Gini coefficient. Among them, absolute poverty rate of the Gini coefficient has a clear geometric meaning, which can reflect the proportion of the income distribution gapcaused by poverty.Based on above concepts, associated the relative index–Gini coefficient, and theabsolute poverty standard-poverty line, the issue gives a comprehensive measurement–Poverty Degree of Gini Coefficient.By different methods the issue measured Gini coefficient of rural and urban and allthe residents in China. On the basis of the solution about Chinese urban residents, theissue calculates the cumulative poverty gap rate, and Gini coefficient of poor population,and absolute or relative poverty rate of Gini coefficient, and then gives the figure of Ginipoverty degree.From the calculated result, we can see that, in the past20years, the incomedistribution gap of Chinese urban residents increased rapidly, while the influence ofpoverty decreased. This phenomenon fully embodies the affection of the series ofeconomic reform in city. First of all, the reform of income distribution system causedurban residents income source diversification, and the proportion of the business incomeand property income in the whole income increased, which are main causes of wideningthe income distribution gap of urban residents. Second, with the rising price levels andwidening the income distribution gap, urban poverty problem emerges. Next, theinfluence degree of poverty to income distribution gap gradually reduces, andincreasingly,the widening of income distribution gap of urban residents are affected bynon poor people, which means the phenomenon of "rich get richer" play a leading role tothe income distribution gap of Chinese urban residents.From the empirical analysis result we know that our government need to take manymeasures to narrow the income distribution gap in China, such as keeping sustainableeconomic growth, paying more attention to the problem about “three rural” problems,perfecting social security system and the system of subsistence allowances, expandemployment and improve the employee’s capacity and so on, for promoting thesustainable development of national economy.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development > National income, national wealth
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