The Research On Property Income Gap Between China’s Urban And Rural Residents

With the sustained and steady development of China’s socialist market economy, theurban and rural residents’ wealth continues to accumulate, and the per capita propertyincome is increasing rapidly. The per capita property income of China’s urban residentswas45.8yuan in1993, but in2010the number reached520.33yuan, which increased by11.36times; The per capita property income of rural residents was7.02yuan in1993, butin2010the number reached202.25yuan, which increased by28.81times. The propertyincome of urban and rural residents not only showed a rapid growth trend, but also showedsignificant differences in the absolute amount of the property income. The urban and ruralresidents’ property income gap increased from38.78yuan in1993to318.08yuan in2010,which was raised by8.2times. The contribution of property income to the income gapbetween urban and rural residents continues to grow.Property income is a derivative income, and through the role of the Matthew effect,the poor become much poorer, while the rich get richer, thus leading to unequaldistribution of property income. In addition, property income lacks mobility, and it is easyto block the flow of social class. Moreover, this phenomenon presents from generation togeneration, forming a vicious cycle of property income gap between the rich and the poor.These characteristics of property income have exacerbated the severity of urban and ruralresidents’ income distribution inequality. The property income gap between urban and ruralresidents is a theoretical and practical problem in the field of income distribution, and howto deal with this problem is directly related to the smooth implementation of building awell-off society and socialist harmonious society objectives. Under this context, the paperattempts to explore the current status and problems of China’s urban and rural residents’property income gap, and aims to provide a useful reference on the theoretical research andpolicy formulation.Based on consulting a large number of literature and statistical data, the articleanalyzes the problems of China’s urban and rural residents’ property income gap. The trendof property income gap has shown that the property income of China’s urban and rural residents has a significant stage characteristics, and through studying we can see that thedevelopment and changes of each stage is closely related to China’s previous incomedistribution system reform. Through comparing the property income of different incomegroups among urban and rural residents, we can find that whether in the internal of urbanresidents and rural residents or between urban residents and rural residents, the propertyincome gap has gradually widened.In order to understand the level of property income gap between urban and ruralresidents in China more clearly, this paper tries to measure the Lorenz curve, the Ginicoefficient and Theil index with methods that are learned from some predecessors. Byanalyzing the Lorenz curve in the year of2003and2010, the paper finds that propertyincome distribution inequality is much higher than the total income distribution inequality.This paper estimates the Gini coefficient from2003to2010and the results show that:Whether in urban area or in rural area, the property income Gini coefficient is too high;According to the results of the Gini coefficient decomposition, the gap between urban andrural residents’ property income has made the largest contribution to the overall propertyincome gap. In addition, the article estimates the Theil index and finds that the central partof China has the largest urban and rural property income gap, west followed, the easternpart has the smallest. This paper then analyzes the causes of property income gap in Chinafrom three aspects: the housing, land and financial assets. At last, it puts forward somesuggestions on reducing property income gap between urban and rural residents.