How To Expand The Middle Income Group

Since reform and opening, China’s economic growth has made considerable progress. However, accompanied by a substantial increase in income, income distribution imbalances have become increasingly prominent. Different income groups gathered toward the poles, low-income groups and the proportion of high-income groups continues to expand, and the proportion of middle-income groups gradually reduced, this trend drawn the government and the whole society’s attention and attention.Since2002raised the proportion of middle-income proposition in The sixteenth people’s Congress of the Communist Party of China, this topic has become a hot issue in domestic scholars, but previous studies mainly from the perspective of sociology, focused on the theoretical research and qualitative analysis, quantitative analysis is relatively little literature, Especially about the change of medium income group. This paper will make an empirical analysis on problems of middle-income groups in China, factors affecting discusses middle-income groups scale changes in China from two aspects of static and dynamic. To get the information about who is easy to stay in middle-income groups, who lack the ability to enter the middle-income groups, so as to achieve an antidote against the disease, puts forward some measures to improve the income of low-income groups, regulate high income, expand the middle-income groups, and eventually formed the "olive" distribution structure.The paper consists of five parts:The first chapter is the introduction, mainly explains the background and significance of topics, research ideas and content. Now the definition and classification of the middle-income group does not have a uniform standard, in this chapter, we also reviewed the related literature at home and abroad, make a difference of the middle class and the middle income groups. Then discussed the different classification criteria of middle-income groups from sociology and economic perspective, solved the problem of the medium income group division standard. Finally, it defined the concept and classification of middle-income groups in china.The second chapter measures the proportion of middle-income groups in china. Based on the existing division of medium income group method, puts forward a new method, the partitioning method based on median and income distribution curve. To made up Urban and rural income distribution curves by nonparametric kernel density estimation, then found that65%～135%of median could be the criteria to divide middle-income groups, it was reasonable.The third chapter analysis the influence factors of the proportion of the middle-income group changes from a static point of view. Investigate the characteristics of each income group from the five aspects of demographic characteristics, health status, human capital, employment status and insurance status by using the multinomial logistic model.The fourth chapter analysis the influence factors of medium income group scale change from a dynamic perspective. According to Different qualities, all residents will be subdivided into different groups. Then make a thorough inquiry for influential factors on expanding middle-income groups.The fifth chapter is a summary of all the research content of this system, and finally, according to the empirical results in this paper, we put forward the policy suggestions to expand middle-income groups.