An Empirical Analysis Of The Influencing Factors Of Urban Residents' Income Gap In China

The reform and opening up has already experienced for thirty years in China. The economic growth has made eye-catching achievements, which has been accompanied by a continuously expanding resident's income distribution gap. Especially in recent years, the gap has become more pronounced, which has restrained China's sustained and steady economic growth, it may even to some extent become the constraint of China's reform and development. The report of the seventeenth People's Congress advanced that a reasonable income distribution pattern would basically take shape till 2020, which include the majority of middle-income people and basically without absolute poverty. For this purpose, the in-depth study on this issue is in particularly urgent. It is not only of great theoretical significance, but also of far-reaching practical significance. Dual economic structure is very obvious in China and there are many differences between urban and rural areas. So there only discuss the situation of China's urban residents in the paper.First, analyze the quantitative indicators and descriptive words which can measure the gap and get the conclusion that the income gap is widening. On the basis we further analyze the relation between the gap and the consumer demand. There is a significant negative correlation between them. The widening gap is an important reason that can lead consumption demand deficiency.Second, combine the methods of principal component and linear regression to analyze the influencing factors of the gap. Then find out the main socio-economic factors that may inhibit the gap.Finally, put forward some proposals according to the actual situation of China. On the basis of the predecessors, it is more realistic that make the gap to be both the reason that impact the consumption demand and the result of economic growth and then put forword proposals. In addition, this paper, based on a lot of statistical data, uses several indicators to measure the situation of the gap. It is more reasonable compared with measuring the gap by only one indicator.The research method of the paper is combining the theoretical analysis and econometric models. The indicators selected in the models are more comprehensive. The data used in the paper are fresh. And the interpretations of the models in the paper are stronger.