| Marketization is the direction of the economic reform of China. In the market-based course, it is unavoidable that household's income gap widens excessivly. And it is also unavoidable that the poor demographic situation worsens. This requires the government to intervene, implement the proper policy of the income distribution. As the household's main means of income reallocate, government's transfer payment is influencing household's final disposable income directly. From initial "the Poor Law" to various kinds of social security system at present, the effect of household's income reallocation from the government's transfer payment, mainly shows in the following two aspects: reducing poverty, ensuring the interests of the low income group; reducing the unavoidable unequal of the income distribution in the pure market at the same time. Combined the actual conditions of our country, the paper analyses the rational scale and optimum way of government's transfer payment. And it also investigates the influence that transfer income give to the household's income unequal of our country. Through the argumentation, we insist, we should perfect the system of the government's transfer payment of our country, in order to improve household's welfare level. |
