Research On Convergence And Influencing Factors Of Income Inequality In China

Since the reform and opening up,China's economic and social development and various social undertakings have made remarkable achievements.China's economy has maintained a long-term and stable growth.In 2019,China's per capita GDP exceeded $10000,and the total economic volume increased steadily.As early as 2010,China became the second largest economy in the world,and in the same year,it entered the ranks of middle and high-income countries.The share of the total economic volume in the world increased from 1.8%in 1978 to 16.19%in 2018.The rapid growth makes the world wonder,and its international influence and international competitiveness improve step up.In recent years,China's economic growth has gradually slowed down,and the economy has changed from the stage of high-speed growth to the stage of high-quality development.However,due to the influence of geographical environment,economic development mode,industry differences and policy factors,social income inequality has become increasingly prominent.Since 2000,the Gini coefficient of China's residents' income has been maintained at the level of 0.4-0.5,which is at the level of large income gap.The continuous expansion of income gap will lead to weak consumer market and insufficient domestic demand,hinder economic growth,affect the further optimization of economic structure,and then affect the overall operation efficiency of the national economy,and have a greater negative impact on building a moderately prosperous society in an all-round way,realizing socialist modernization and the great rejuvenation of the Chinese nation.At the same time,we should pay attention to the problem of income gap and control the degree of income inequality within a reasonable range.This paper makes a descriptive statistical analysis of the per capita disposable income data of 31 provinces and cities in China in 2018,and finds that:the eastern region has the highest level of disposable income,which is above the national average level except Hebei and Hainan;the per capita disposable level of the central region is at the medium level,but only Inner Mongolia is above the average level,and other provinces and cities are below the average level.However,it is close to the average level;the per capita disposable level in the western region is the lowest.Except Chongqing,which is close to the average level,other provinces and cities are at a low level and in the bottom.The degree of income inequality among provinces and cities can not be ignored:in 2018,the per capita disposable income of the whole country was 28220 yuan,10 provinces and cities were above the average level,and the other 21 provinces and cities were all below the average level.The difference between the lowest level(Tibet 17286.1 yuan)and the highest level(Shanghai 64182.6 Shanghai)was more than three times.Then,starting from the time series analysis,this paper calculates the Gini coefficient of 31 provinces and cities in China from 1978 to 2019 by using the income grouping data and income related data from the statistical yearbook.Then,LM and RALS-LM unit root tests are conducted to test the stochastic convergence of income inequality among 31 provinces and cities in China.The unit root test of RALS-LM allows the existence of multiple trend breaks and non-normal errors.This method can make full use of all possible information to maximize the ability of the test,and make the test not affected by the interference parameters indicating the position of structure interruption.Compared with LM Test without non normal error information,the RALS-LM test has higher efficiency and does not contain indication structure interruption.The interference parameters of the position provide more accurate evidence for the stability of the original series.In the case of no structural change,the test results of ADF,LM and RALS-LM tests show that:at the significance level of 5%,the null hypothesis of unit root is rejected,that is,the convergence of relative income inequality in Heilongjiang,Shanghai and Shandong is significant.In the case of considering structural changes,one interrupted LM and RALS-LM unit root test shows that:at the 5%significance level,the relative income inequality of Beijing,Liaoning,Zhejiang,Hubei and other four provinces and cities has convergence;the test of two interruptions shows that under the significance level of 5%,eight provinces and cities,including Beijing,Tianjin,Shanghai,Zhejiang,Fujian,Hubei,Chongqing and Yunnan,have convergence The relative income inequality is convergent.Generally speaking,the convergence results of Beijing,Shanghai,Zhejiang and Hubei are significant,while the convergence of other provinces and cities is not significant,which shows that the income inequality of most provinces and cities in China has not reached the convergence state,and the income gap between provinces and cities is still expanding.Finally,the fixed effect model is used to analyze the influencing factors of income inequality.It is found that the public budget expenditure,the proportion of urban population at the end of the year,the number of ordinary colleges and universities,the proportion of the secondary industry and the proportion of the tertiary industry have a negative impact on the degree of income inequality The industrial proportion and the difference between urban and rural per capita income have a positive impact on the degree of income inequality,that is,reducing the level of these two indicators has a good effect on narrowing the income gap.