Study On The Impact Of Social Security Expenditure On The Urban-rural Income Gap In Anhui Province

With the economic and social development in our country,the income level of residents continues to increase.However,the income gap between urban and rural residents in this process is constantly widening.As an underdeveloped province in the middle China---Anhui Province,the income gap between urban and rural residents is also expanding year by year.The 19th Plenum of the Party proposed that we should pay more attention to social fairness in development and constantly eliminate intra-regional differences,income differences and urban-rural differences.As a "regulator" of income distribution,the social security system should play a dual role in improving the life of residents and in maintaining social fairness.Based on this background,this paper hopes to study the impact of social security expenditure in Anhui Province and the income gap between urban and rural residents in order to put forward effective policy recommendations for social security to help improve the status quo of income disparity between urban and rural residents in Anhui Province and the country.Through the study of domestic and foreign literatures,it is found that the academic community has reached a consensus on the conclusion that social security expenditure will have an impact on the income gap among residents.However,the domestic scholars have no clear direction on the impact of social security expenditure on the income gap between urban and rural residents.One class thinks that the increase of social security expenditure can effectively reduce the income gap while the other opposes it.In order to study the situation of Anhui Province in detail,this paper collects and analyzes the relative data of social security expenditure,financial expenditure,disposable income of urban and rural residents in Anhui Province and the whole country,as well as the present situation of social security in Anhui Province.It is found that though the social security expenditure has been set up at a relatively high rate year by year.Expenditure accounted for a higher proportion of expenditure than that of the whole country.However,the income gap between urban and rural residents is still widening.In order to further study the direction and influence of the social security expenditure in Anhui province on the income gap between urban and rural residents,this paper chooses the income gap between urban and rural residents,social security expenditure,urbanization rate and economic development as indicators,selects Anhui Province from 1999 to 2016 Time series data to establish the vector autoregression(VAR)model and determine the size and direction of the impact through the cointegration test,impulse response function,variance decomposition and other research methods.The conclusion shows that the increase of social security expenditure in Anhui Province will result in the widening income gap between urban and rural residents both in the short run and in the long run.In the short term,the widening income gap between urban and rural residents is most affected by the increase in social security expenditure among all the studied factors.Based on the results of comparative analysis and empirical analysis,this paper proposes that the proportion of social security expenditure in fiscal expenditure should be increased under the goal of raising the level of social security and reducing the discrepancy between urban and rural areas.The current social security expenditure structure should be improved and the policy toward rural areas should be tilted,Improve rural social security network,improve rural social security coverage,pay attention to the balance of expenditure efficiency and fairness and other policy recommendations.