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Income Gap between Urban Residents and Decomposition Analysis in Zhejiang Province

Author: XuZuo
Tutor: LiJinChang
School: Zhejiang Technology and Business University
Course: Statistics
Keywords: Income Gap income decomposition employees household income
CLC: C812
Type: Master's thesis
Year: 2008
Downloads: 333
Quote: 2
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Abstract


The reform of the economic structure has led to changes in the mechanisms of benefits distribution, and the pattern of the income distribution has changed significantly, then the income inequality was growing larger. Now, The income distribution has become one of the problems which the masses of people are most concerned. Researching on the status of the income inequality, overcoming and preventing the emergence of the abnormality in the area of income distribution, putting forward some positive countermeasures on regulating income distribution issues is very important and meaningful, because these can ensure development of the socialist market economy is healthy.This paper used qualitative and quantitative analysis to analyze and research the status and the trend of income gap among Zhejiang urban residents based on survey data which was provided by Zhejiang Survey team in 2002, 2006. The study was comprised of two pieces: Firstly, the income gap between urban employees. We employed the technique of decomposition by population subgroups on gender, age, work, experience, region, education, type of employment, Industry, occupation, to know the income gap between the groups and the income gap within the group. Then we did income decomposition by factors, using Ranis and Feide composition formula, to know every demographic characteristics impact and the trend. Secondly, research on the income gap of urban household in Zhejiang Province, to know how the family characteristics affect the household income gap and its trend.Through study, we found the gap between the groups of employees is affected lager by employee’s occupation, education, industry, type of employment, and affected little by factors such as gender, age, work experience, areas. The disparity between income groups went smaller decomposed by industry factor, while it went larger decomposed by education, gender factor. With the improvement of the educational level, the income gap within the groups basically gradually reduced; The higher people’s living standard was, the more unfair income distribution was; the income gap of public ownership economy is small, but in private and individual economy it is large.Through income decomposition by factors, we found: In 2002 the three top factors affecting income distribution were the industry, occupation, level of education; while in 2006 they were the educational level, occupation, gender. The result was similar to income decomposition by population subgroups. If a certain demographic characteristics made the income gap among groups larger, the contribution rate the factor made would be increased in the income decomposition by factors.Income gap of household in Zhejiang province went larger. In 2002 the three top factors affecting household income distribution were average transfer income, the proportion of employees in high-income occupation in the family, tthe proportion of employees in the family; while in 2006, they were average transfer income, the proportion of employees in the family and the proportion of employees in high-income occupation in the family. Occupation, the educational level not only have an important impact on the income gap of employees, they also have a major impact on household income gap. The impact of the industry has been gradually reduced.

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CLC: > Social Sciences > Statistics > Statistical methods > Statistical data analysis and sorting
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