The Research Of Poverty Groups Income Change Based On The Quantile Regression

Income distribution is an important research branch in macroeconomics. Along with revenue growth in the economic development process, how to make efficient and equitable distribution is concerned about the problems of government and society. Benefit from the reform and opening up, Chinese economy got great development, the level of per capita income has been greatly improved. However, we can’t ignore a part of groups still not enjoy the fruit of development. It is undeniable that China’s poverty reduction work has got a lot of progress, but there are still great space can be improved. We should face up to the gap between different income groups is becoming greater and greater. To narrow the income gap, the poor groups should be mostly concerned about. This paper is based on this background to research and analyze the changes of the poverty groups.Based on the individual income data provide by CHNS database, combined with quantile regression, five factors, namely, education, work experience, marginal work experience, gender, and urban and rural were selected here to construct the residents’income quantile regression model. The research focuses on the Poverty groups income change. It’s found that the number of the income of the poor groups is increased, but still below to the poverty line of＄1per day. The survival statement of poor person is very bad. Further the Machado and Mata quantile decomposition method is used to decompose the effect of different factors to the income level. As to the education and working experience, the characteristic effect is important. As to the other factors like marginal work experience, gender and urban and rural, the coefficient effect plays a major role. Based on these studies, some suggestions were proposed to narrow the distribution gap, and to improve the income of poor groups.