Study On Social Capital And Personal Income Of Urban Residents

The socio-economic system is huge and complex system，and Income distribution isa very important subsystem of the entire socio-economic system. The division ofincome has the significant influence to the production efficiency, people’s vitalinterest as well as society’s harmony, therefore the division of income questioncontinuously is paid attention. In the marketability advancement process, our countryinhabitant income level enhances unceasingly, but the income differential question isserious, specially cities inhabitant income differential question. Therefore, the studyof urban income gap seems even more important.Study on forming mechanism of the income gap issue, existing documents fromphysical capital, human capital, political capital perspective to analyze the factorsaffecting residents ’ income and their relative contribution to the income gap. InChina, the levels of marketization is relatively low and the flow of information notsmooth, re market information and employment inequality are factors that cannot beignored, owned by an individual’s social capital as the major factor affecting personalincome and differences. From the perspective of economic, this article researches theimpact of social capital on personal income and income gap. Meanwhile, this paperdiscusses what is the difference between the contribution of personal income gap ofurban residents in the different areas of the market.Using CFPS2010data for empirical analysis found: social capital cansignificantly improve the personal income of urban residents, and relative to theCentral and Western regions in which level of marketization is relatively lower, socialcapital’effects on personal income of urban residents increases in the eastern region inwhich the level of marketization is relatively higher, in other words, social capitaleffects on personal income of urban residents increases with the deepening ofmarket-oriented. At the same time, this paper used G.Fields method to break theindividual income gap of urban residents and found that social capital has a largercontribution on individual income gap of urban residents, and the contribution ratereached more than10%. In eastern regions where degree of marketization is relativelyhigher, the contribution of social capital to individual income gap of urban residents ishigher than its contribution in the Central and Western regions where the level ofmarketization is relatively lower, and this is mainly because relative to the Central andWestern regions in which level of marketization is relatively lower, social capital’ effects on personal income of urban residents increases in the eastern region in whichthe level of marketization is relatively higher.