Research On The Impact Of Social Security Expenditure On The Income Gap Of The Population

Since 2010,China’s GDP has overtaken that of Japan to become the world’s second largest economy after the United States,in the meantime,the living standards of people are also rising.However,in the process of rapid economic development,some problems have emerged,including the widening income gap.The disparity in income distribution is not only related to the development of individuals and the lives of residents,but also to the fairness,stability and sustainable development of society.The government needs to take measures to regulate the income disparity,and social security is a very important public policy that can play a significant role in regulating the income disparity.The study of the relationship between social security and income disparity is of practical importance,not only as an important issue for the Chinese government,but also as an important issue for the field of administration and economics.This paper analyses the current situation of the income gap in China,its trend in recent years,and the problems that exist,the overall expenditure on social security,the sub-situations,the comparison with other countries in the international arena.Through the analysis of a large number of data charts and graphs and by combining the relevant theories of welfare economics,economic liberalism and state interventionism,and Marxist income distribution.The adjustment mechanism of social security on residents’ income.The correlation between social security and residents’ income disparity is analyzed in detail,and the mechanism of the influence of fiscal social security expenditure on residents’ income disparity is explored.In terms of empirical analysis,Stata was used to carry out empirical analysis on panel data of 31 provinces,cities and autonomous regions from 2007 to 2020,and finally concluded that fiscal social security expenditure has a positive moderating effect on narrowing the residents’ income gap,which means that increasing fiscal social security expenditure can narrow the residents’ income gap in China.The correlation analysis between fiscal social security expenditure and residents’ income gap was also conducted in East,Central,West and Northeast regions,and relevant conclusions were drawn:In the central part of the country,fiscal social security expenditure played an inverse role in reducing the income gap,in the west of China,fiscal social security expenditure played a positive role in reducing the income gap,and in the east and northeast of China,the coefficient did not pass the significance test.In the end,the article proposes relevant policy recommendations in conjunction with the findings of the analysis.