Empirical Analysis Of Effects Of Different Levels Of Education On The Gap Of Income Distribution In China

With the development and progress of the times,China’s market economy gets more prosperous and stable,social development is more harmonious,and people’s living standards are also increasing.However,the gap of national income level is expanding and tends to be unequal.At present,the gap between the rich and the poor in China has far exceeded the warning level of the United Nations standards for the gap between the rich and the poor,and the situation is very serious.According to the theory of human capital,education,as the most important way of human capital investment,can’t be ignored.Therefore,this paper takes education as the breakthrough point to study the impact of different education levels on the income gap of residents,which has the theoretical value and important practical significance.Based on the panel data of 31 provinces,regions and cities in China from2005 to 2017,this paper establishes static panel model and dynamic panel model of fixed effect and random effect respectively from the perspective of human capital structure distribution and government financial education expenditure.This paper studies the relationship between the development of different levels of Education(primary school,junior high school,senior high school,vocational education and general higher education)and the regional income distribution gap(the gap between all residents,the gap between urban and rural areas and the gap between industries)to demonstrate whether education at all levels has a positive or negative impact on the regional income distribution gap,and to what extend is the influence respectively.Finally,in order to avoid the difference of Gini coefficient calculation results due to different calculation methods,which will affect the measurement value of income distribution gap and affect the model results,this paper recalculates Gini coefficient by fitting the residents’ income distribution function and brings it into the model to test the stability of the model results.At the same time,taking the research results of the model as the theoretical basis,the paper puts forward reasonable measures to restrain the regional income gap.