Policy Factors Affecting Social Income Gap Analysis And Suggestions

For over 30 years of reform and opening-up, the social economy of our country developed rapidly, and China turns into one of those high-income countries in 2010. However, the income gap problem also becomes the focus of attention from all walks of life. Take Gini coefficient (which reflect the differences in the degree of income distribution) for example, in the last ten years, China’s gini coefficient values have been between 0.47-0.5, resembling the large income gap which is close to great income disparity. In particular, the main regional social income gap of our country lies between urban and rural region, different industries and different areas. Combined with the statistics from national bureau of the former statistical yearbook and relevant data querying to world bank website, and analyzing the present situation of the income gap between urban and rural areas and different industries in China, we can find out that at present there is great disparity between urban and rural areas, different industries and different areas in our country.There are many factors which can influence social income gap, most of them can be attributed to the natural, historical and marketing reasons. The marketing mechanism for selecting the superior and eliminating the inferior will inevitably lead to the expansion of income gap, but the market itself does not have a reasonable adjusting function of social income gap. The target of market mainly embodies in efficiency whereas the government focuses more on social justice, so the government and market assume different functions in the social income distribution. Apparently, the factors affecting social income gap should not be ignored for the current situation of income distribution in our country. Adam Smith pointed out that European policy factors produced greater uneven than the market on the analysis of the influencing factors of the income distribution. And for our country, from the value orientation of government for income distribution policy on the regional differences, between urban and rural areas, between industries and the policy being carried out, we can analyze the effects of government policies on social income distribution. At the beginning of the reform and opening up, in order to speed up the development of social economy, the government emphasis more on the "efficiency" value orientation in the income distribution, thus causing the expansion of the income distribution gap. At the same time, the policy differentiation between regions, urban and rural areas and different industries has further widened the income gap. In addition, there is a vacancy in the policy implementation, misalignment and offside behavior, which is also unreasonable factors leading to income distribution gap.Reasonable income distribution system can not only promote the benign development of social economy, but also to maintain social stability, creating a good social environment for the benign economic and social development. Therefore, in view of the policy factors caused by the unreasonable income gap, the government should adopt corresponding policies and measures to make amends. Firstly, setting right the value orientation of government for income distribution at present stage, in light of the present condition of the income gap is unreasonable, the government should be more prominent to the policy of the "fair" value orientation, pay attention to the realization of equality of opportunity. Secondly, define the boundary of the government and the market scientifically, the social gap caused by market itself is too large, the government should play its functions, take on rational guidance and regulation, and complete the social security system to promote social justice. Thirdly, take effective policy measures to make up for the unreasonable gap between urban and rural areas, different areas and industries. The government should also try to avoid conflict with public interests in the process of policy formulation and execution, take public interests as the decision goal, and increase the intensity of policy implementation, eliminate the illegal income, and promote the rationalization of social income distribution gap.