Studies On Sichuan Inhabitants’ Income Disparity Since The Reform And Opening Up

Since the reform and opening up. income level of residents has been greatly increased due to the the development of economy. However, income disparity of inhabitants’is also expanding. Therefore, income disparity has been the focus of whole society, at the same time, it is also a problem to be solved urgently. In addition, income allocation is a part of public finance research.In this context, it not only has theoretical value but also has practical meaning to study inhabitants’ disparity. Consequently, this thesis chooses the income disparity of Sichuan inhabitants as the object of study.This paper investigates the changing tendencies of income disparity of Sichuan intra-urban inhabitants, intra-rural inhabitants as well as income inequality between rural and urban residents. The results indicate that the intra-urban and intra-rural Gini coefficients are declining in recently years; meanwhile, the changing trend of rural/urban Gini index is not clear, therefore, the whole-province’s Gini ratios fall.By decomposing the Gini ratios, the key role in Sichuan income disparity is rural/urban income inequality which contributes over60%of whole province’s income disparity. We also find that over75%increased income disparity between rural and urban areas came from increased urban population before2008, however, further increased urban population will narrow rural/urban income divide and province-wide income disparity finally. Based on above analysis, we present some suggestions for policy-maker.