Research On The Mechanism And Effect Of Fiscal Education Expenditure On Urban-rural Gap In The View Of Income Gap

With the acceleration of the pace of building a moderately prosperous society in all respects,the living standards of Chinese people have greatly improved,but the gap between the rich and the poor,the urban-rural gap,and the regional gap still exist.At present,the gap between urban and rural areas is one of the most prominent contradictions in Chinese social and economic development.On the one hand,the gap between urban and rural comparative labor productivity has been widened,and the characteristics of the urban-rural dual structure is still obvious,as shown by the significant increase in the income of urban and rural residents,the absolute per capita disposable gap between urban and rural residents in 2019 is 26,338 yuan,the urban-rural income ratio is 2.64:1,and the gap between urban and rural low-income people is large.On the other hand,the government has continuously improved the quality and level of providing public goods and services,and pays more attention to improving the level of basic public education services in urban and rural areas.Since2012,the proportion of national fiscal education expenditure to GDP has remained above 4%,and the proportion of fiscal education expenditure in fiscal expenditure has exceeded 16%,the increase in education expenditure is helpful to reducing scarcity of educational resources.Even though,there is still a large gap in educational resource distribution between urban and rural areas.Based on theoretical analysis,this paper starts from the government action to narrow the gap between urban and rural areas,fiscal education expenditure and urban-rural income gap are used as the core variables to study the mechanism and impact of fiscal education expenditure to urban-rural gap.Firstly,this paper thinks of the causes and influencing factors of our urban-rural gap in many literature and theories,and analyzes the inner relationship between fiscal education expenditure and urban-rural income gap.Secondly,this paper analyzes the impact mechanism of fiscal education expenditure on urban-rural income gap.Financial education expenditure affects people’s income ability as an important channel for human capital formation,it also promotes the development of education,promoting social progress and economic development.The changes in scale of fiscal education expenditure,the hierarchical structure of expenditure,and the regional structures have different effects on the urban-rural income gap.This paper considers that the impact of fiscal education expenditure on the urban-rural gap is non-linear,with the effect of expanding first and then shrinking.Thirdly,based on the provincial panel data,the empirical analysis is about the impact of fiscal education expenditure on the urban-rural income gap.The first study is the relationship between fiscal education expenditure and the urban-rural income gap: by establishing a PVAR model of the Theil Index and fiscal education expenditure,the impulse response graph is analyzed and the results show that fiscal education expenditure has a long-term effect on the income gap between urban and rural areas.The second is to use panel data models to estimate the impact of fiscal education expenditure on the urban-rural income gap.The results show that the impact of fiscal education expenditure in fiscal expenditure on urban-rural income gap is the "inverted U" type,and the proportion of secondary vocational education fiscal expenditure,the proportion of fiscal education expenditure in central and western regions have the same relationship with urban-rural income gap.The effect of primary education fiscal expenditure is not significant,and higher education fiscal expenditures has significant effects on reducing urban-rural income gap.For the east,neither the quadratic term nor the first-order coefficient is significant.The reason is that the economic development in the eastern region is high and there are many factors affecting the urban-rural income gap.The "inverted U" law in the central and eastern regions needs to be tested in future study.Finally,policy suggestions are made to to increase farmers’ income,accelerate rural economic development,and narrow the urban and rural income gap: increasing the proportion of education expenditure in fiscal expenditure at the national level,optimizing the educational structure,established a team for rural industrial management,and promoting the flow of factors between urban and rural areas.