Reserch On The Decomposition Of The Size Of Middle-income Groups And Its Influencing Factors In China

On the party’s Eighth Congress in 2012, Xi Jinping to mentioned that "we should to narrow the gap of income distribution, continue to expand the middle-income groups, the poverty significantly reduced" This is the goal of the modernization of a well-off society, which indicates that the middle income class in become a group that can’t be ignored in China. Middle income groups became a more and more significant group. The research on the change of the income structure and the proportion of the population is very important.First of all, this article based on the historical situation and the economic situation of our country, it make a analysis of the definition of middle-income groups. It is based on 9 years historical survey data of the China Health and Nutrition Survey (CHNS), Comprehensive the various methods of the definition to calculated the proportion of China’s middle-income groups, and compared with the status of the country, Finally, the median division method is selected to define the middle income groups. Using kernel density estimation method to fit the income of our country’s residents, and calculate the proportion of middle-income groups in China. Study on the distribution of the income groups in China and the change of the proportion of the medium income group by the kernel density estimation method.Secondly, based on kernel density, it is use dynamic decomposition method to analysis the changes of the our middle-income groups proportion. And it is in-depth study of the proportion change and income gap in China’s middle-income groups; the use of quantile regression method to explore the microscopic variables for looking the influence of people’s income, to find an obvious reason for affecting the income. By analyzing the influence factors of the proportion of the medium income group and the change of the income level, to find the feasible way to improve the proportion of the medium income group.Through a comprehensive analysis of the macro and micro two aspects, this paper have a great significance on narrow the income gap of residents, and the formation of a reasonable income distribution pattern, than to realize the social harmony and common prosperity.