Research On The Impact Of Human Capital On Income Inequality

Since the reform and opening up more than 40 years ago,China’s economic development has grown rapidly,and remarkable achievements have been made.The people’s living standards and the level of economic development have been significantly improved,and China’s overall national strength has been continuously enhanced.But colleagues in national progress in all aspects,the problems appeared in the development of also increasingly prominent,industry,regional inequality also gradually revealed,including higher attention in recent years is the residents’ income distribution inequality,if income inequality problems that cannot be improved,will realize a well-off society in an all-round way in China,the economic sustainable development.The Gini coefficient,a commonly used indicator of income inequality,has been published on the website of the statistics bureau of the People’s Republic of China.The figures show that the Gini coefficient has been higher than 0.4 for many years,indicating that China is facing a serious income inequality problem.Serious income inequality is not conducive to sustainable economic development and will affect social stability.Therefore,how to alleviate income inequality has become an important issue that our government urgently needs to solve.In the operation of the social economy in our country,the human capital for the residents’ income distribution plays a very important position and role,so this paper from the perspective of human capital stock to explore its research on the effects of inequality of residents income gap,quantitative measure of human capital to the influence degree of the residents income inequality,and puts forward relevant policy recommendations,to help the government to make more scientific and reasonable policy and economic departments.Therefore,the research of this paper has certain theoretical and practical significance.On the basis of combing the relevant theories of human capital and income distribution,this article analyzes the current position about human capital stock,urban-rural and regional income gap in China,and analyzes the impact of urban-rural human capital stock structure on residents’income inequality by constructing a theoretical model.Based on the statistical data of 30 provinces and cities in China from 2000 to 2017,the fixed effect model and spatial panel data model were established to measure the income inequality in China with the Thiel index,and to construct an empirical model of the inequality of human capital stock to residents’ income distribution.First of all,to the national and subregional fixed panel model was used to study human capital stock of the impact of income inequality,and then further also by calculating Moran’s I index found provinces urban and rural income gap exists significant spatial correlation,spatial lag model(SLM),the research on spatial spillover effect under the condition of human capital’s impact on income inequality.Finally,After the empirical analysis,the paper gives some suggestions and strategies to narrow the income gap between urban and rural areas and improve the level of human capital.The results show that there is a positive correlation between human capital stock and income inequality.In points under the condition of economic regions,the results are almost the same,in which human capital stock of the regional income inequality improving degree is different,the west by the positive influence degree is the largest,followed by the central,eastern affected by the youngest,but the overall trend is consistent,affected are conducive to narrow the income gap,improve income inequality.The innovation embodied in this paper is reflected in the following aspects:First,most of the existing research literature on income inequality is based on microscopic data.Considering that China’s income inequality is quite different in different provinces,we used inter-provincial panel data to conduct a more detailed investigation across the country,so as to make the research results more targeted and provide more realistic Suggestions for the formulation of China’s public policies.Second,in order to obtain more accurate and reasonable empirical results,this paper uses different models for research.First,the traditional panel model is used to regress the national regions,and on this basis,the income differences of different regions are taken into account,and the eastern,central and western regions of China are regressed to test the robustness of the model.In addition,most of the existing literature has not explored the correlation between the geographic locations of different provinces.In this paper,we consider the differences and correlations caused by spatial factors,and further use spatial econometric models to regress panel data In order to supplement the existing research methods,the empirical results can reflect the economic reality more objectively and comprehensively.