Analysis Of Household Income Inequality Based On CHNSsurvey Data

In the recent years, our economy has grown more rapidly and acquired great achievements. Total economic output are more than Japan in 2009, GDP ranks second in the world after the United States. However, in 30 years of economic development, imbalance between different areas of our country has enlarged as well as the income gap between urban and rural residents. Our government and our people is very concern about this phenomenon. Widen income gap will inevitably lead to the reduction of social stability, and impact on our economic, political and social reform. Expansion of income gap didn't meet scientific development concept. In this paper, we uses CHNS micro data, and focuses on components of income gap among urban and rural household from different areas, as well as components of the changes in income gap among urban and rural residents, which were measured with quantile and Theil index.This paper contains two section. The first section analysed the raw data of CHNS, and calculate the urban households and rural households income statistical indicators and quartile indicators. Then examined the size and change in these years.The second section divides the swatch into four parts: east, middle, west and northeast, then decomposed the urban Theil and rural Theil index and domain decomposition. According to the result, we analyzed the changes and components of urban household income and rural household income.We got the conclusion by analyzing: According to the data of CHNS, in the lowest 5% Income of urban households, their income are volatile, and not increased, but there is the phenomenon of returning to poverty. Income of rural households in the lowest 5% increased very slow. Income gap between urban and rural areas is widening, so is income gap of urban and rural household. The next focus of regulation should be done to reduce the income gap of the urban household and the rural household inside.