Study Of Correlation Between The Formal And Informal System And The Income Gap Among Urban Residents

With the acceleration of the reform and opening up, China ha s experienced a large-scaled,epoch-making change in both economy an d society.This change not only promoted the social and economic develo pment, but also brought the result of widening disposable income gap a mong urban residents.The expansion of disposable income gap among ur ban residents is the results of economy development, which leads to maj or social change. It is one of the hottest academic study topics. Howeve r, most researches are focus on the equity of income distribution or analy zing people’s happiness from subjective perception and so on.They negl ect that whether this gap can be accepted by people, and what is the uppe r range of people’s tolerance on this gap. Which factors will affect the ac ceptance degree for the disposable income gap among the people? Essen tially, only based on the acceptance degree of the disposable income, w e can achieve a harmonious income distribution.Based on the perspective of the new institutionalism, this thesi s combined the methods of literature and case interview to collect data, u sing qualitative analysis to explore the correlation among the formal syst em, the informal system and the income gap among urban residents. Add itionally, from the perspective of new institutionalism, this paper propos ed relevant recommendations on how to further improve the acceptanc e of income gap.From this point of view, the acceptance degree of incom e gap among urban residents refers to the acceptance and tolerance degre e of urban residents on the impact of formal and informal institutions. Th erefore, we can analyze our nation’s urban residents’ acceptance degre e of income gap from the formal and informal institution dimensions. Th e state policy and the enterprise administration in formal institution hav e close relation with the acceptance degree, while the values, culture, etc. also have different levels of influence on acceptance degree.The result of the study are as follows:generally, our nation’s urba n residents have positive attitude towards the income gap. Besides, the v ulnerable group is not the most dissatisfied one to this social problem. S pecifically speaking, the higher transparency of the nation’s policy imple mentation, the better policy credibility will be, and the higher acceptanc e degree of the income gap will be; Compared to employees of state own ed enterprises, employees of foreign companies are more positive to inco me inequality; people who hold the value of fair chance tend to posses s higher acceptance degree of the income gap; Residents who received hi gher education are more clear and sensitive to the income gap, and thei r acceptance degree is low.To measure the acceptance degree of income distribution gap accur ately is important to maintain social stability and promote social harmon y. To narrow the income gap and increase the acceptance degree of urba n residents’ income gap, this paper puts forward recommendations as fol lows: first, achieving income equality from the system design level. Narr ow down the income gap, based on our nation’s current economic statu s. The key point to income equality is secondary allocation. Therefore, w e should clear the thought for institutionalization of secondary allocatio n. It should be based on distribution according to working performanc e, and acknowledge the income gap caused by various production factor s inequality. Second, strengthen the binding force of informal institutio n on income distribution. Cultivate residents’ justice value, establish resi dents’ social responsibility, reinforce the third distribution, and actively t ake it as the residents’ standard behavior, restrain their own actions.