The Impact Of Higher Education Expansion On Income Distribution Under Open Condition

The development of higher education and income distribution are two significant social phenomenon in China at present.With the development of the economy of our country and the improvement of opening to the outside world,education has a more and more impact on income distribution.This paper will focus on the correlation between higher education expansion and income distribution.On the basis of Human capital theory,Screening theory and Labor market segmentation theory,we theoretically analyze the impact of expansion of higher education on income distribution.Through the intergenerational mobility of human capital,social investment and school education,the paper mainly discusses the formation of human capital and analyze whether the opportunities of higher education are equal through the different stages of higher education.In the early stage of the development of higher education,higher education opportunities on different people are not equal.Higher education financial expenditure and higher education expansion are benefit to high-income households that increase the income distribution.With the development of higher education,opportunities of higher education on different people are equal.Higher education finance policy has the function of income redistribution.expanding higher education will reduce the income disparity.The paper analyze the relationship between higher education expansion and income distribution in the opening China using panel data of 31 provinces during2002-2014.The empirical results show that: the development of higher education in China may reduce regional income disparity.We do three empirical analysis on Eastern,central and western regions of China,the results show that higher education in the east and central regions can narrow the income gap.After the analysis on the provincial level,we do an empirical analysis on UK,Australia,Belgium,Ireland,Spain,Finland,Italy and Portugal,and find higher education expansion widening income gap of these OECD countries.Finally,based on the results of empirical analysis and theoretical analysis,the paper analyze that higher education expansion has different influence on income distribution in different stages.The influence on income distribution of higher education expansion in opening China is connected with the development level of higher education.We propose some recommendations to narrow the income gap: theeducation finance policy,credit market development and higher education in development in different regions.