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Analysis of Residents’ Income Gap of Jiangxi Provinceand Related Public Policies

Author: XiaoJian
Tutor: HuangXinJian
School: Nanchang University
Course: Public Administration
Keywords: residents’ income gap empirical analysis public policy
CLC: F124.7
Type: Master's thesis
Year: 2012
Downloads: 67
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Abstract


Resident’s income gap has been an important theoretical and practical issue. With the transformation of economic system mode and improvement of economic development level, the amount of household wealth affect the overall living standard.In the United States, wealth in the middle60%of the population has only15%of the total wealth of the whole society,20%of the richest people have more than80%of the social wealth.According to the report of U.S.economic Policy Institute, in2009the richest1%of net household assets accounted for34.6%of total household net worth, the next9%of the family’s net assets accounted for38.4%of all households in net assets, while the remaining90%of the family-owned wealth accounted for only27%of U.S.household wealth.Since2001the National Bureau of Statistics of China for some reasons no longer publish Gini coefficient data that reflects the income gap between rich and poor.However according to research done by Chinese scholars, China’s present Gini coefficient has been far more than the internationally recognized warning level of0.4, up to0.55.The imbalance of income distribution embodies in two aspects:the government revenue as a percentage of GDP increased while the residents’income as a percentage of GDP declined year by year; income gaps between households and between individuals widened significantly.Settling of this issue has the significance of improving economic growth, maintaining social stability and constructing a harmonious society.This paper empirically analyzes the evolution of China’s income gap and reviews native and foreign academic opinions to find that the income gap is still widening and will continue to widen with the economic system reform and development by leaps and bounds.Taking Jiangxi Province as an example, from1978to2011, the per capita net income of its rural households increased from Y140.70to Y6891.63; per capita disposable income of urban households increased from Y305.36to￥17494.87.The province’s income gap is widening from the perspective of urban-rural areas, from a regional perspective and from an industrial perspective.Based on empirical analysis, public policies should be used to study the countermeasures for narrowing China’s income gap, and a harmonious system should be constructed from the aspects of financial policies, social security, promoting employment, education and weakening dual structure.

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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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