| During National People's Congress and Chinese People's Political Consultative Conference 2010, it is said that there is huge income distribution disparity in our sociality mentioned by prime minister Wen Jiabao. Huge income distribution disparity is now affect social stability and economy develop seriously. And now, besides pay attention to economy develop, we should focus on how to lessen income disparity. So, it is a very important mission to analyze income disparity and to find effective countermeasures.In this paper, we based on the existing theories at home and abroad, combination of empirical analysis and normative analysis, qualitative analysis and quantitative analysis. Make use of economy theories to have a deep study on the concept, the factors, the sizes and countermeasures in our nation's regional income distribution disparity.First of all, in the structure of model of income disparity, we based on neo-classic model, according to Galor and Zaira'utility function, induct overlapping generation model, based on the individual optimal function, we get a function which present the interrelation of generation. Then according to the knowledge of statistics, we define the criterion of absolutely and relatively of income disparity. Next we combine the level of wealth in intergeneration and criterion of disparity, to study our model with recursive analysis. Finally we get conclusions are:provide there is initial income disparity existed, and then the absolute income disparity will enlarge continuously, if we don't consider the effect of different random income and work ability, in a sufficient time, the relative income disparity will go to steady state. But we have two different steady states, when household can't expand reproduction according to their heritage, the effect of initial wealth will continue reduce, and finally the relative income disparity will convergence to zero; but when they can expand reproduction, the effect by initial wealth will persistent, and it will convergence to a higher level. That we can say, the disparity of initial income will have a continuous effect on next periods and this kind of gap can not reduce by market power.Next, in order to approach reality, this paper extends the basic model. Such that:when work ability relate to former generation's wealth, income disparity will become larger alone with time. When random income affected by individual income situation, will not have huge effect on income disparity. When government enters our model, government can adjust entirely income disparity by secondly allocation. We all can reduce the situation of income disparity according to government, whether absolute or relative income disparity.The third, this paper depict present Chinese different regions' income disparity. Based on the studies we already have, and according to calculate on per-capital's GDP among each province during 1978 to 2008, and then compare with nationwide' average GDP level in these 30 years, we put 9 provinces that above nationwide level as team one, others as team two. According to observe the continue change of per-capita' GDP of interlocks, we get conclusion is there is little change on interlocks income distribution during 1978 to 1990, whether absolute or relative income disparity. But after 1990, there is big change on income disparity in two groups. To compare with central policy we can see that in order to develop economy, government enact the policy at some province along the sea can develop their economy advance around 1990, then makes income disparity of interlocks have continue change. Finally this paper analyzes above data by Thail index and we get a similar conclusion.At last, these paper present three strategies for income disparity, including controlling the heritage tax by government, secondly distribution by government and enhancing legal supervise. But these strategies can solve income disparity to a certain degree. To solve this problem thorough, we have a long way to go. |
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