The Impact Of Urbanization And Fiscal Expenditure On Education On The Income Gap Between Urban And Rural Residents

The report of the 19 th national congress pointed out that while promoting urbanization,it is necessary to realize the synchronous growth of residents’ income,improve income distribution and pay attention to regional coordinated development,which is also the practical requirement of maintaining sustainable economic development.China’s educational modernization 2035 has set various modernization goals.We must increase rural financial expenditure on education,optimize the structure of education expenditure,and effectively narrow the income gap between urban and rural areas.Therefore,in the new development stage,the impact of urbanization and fiscal education expenditure on the urban-rural income gap is worth discussing,so as to better help fiscal education expenditure play a role in regulating income distribution and promote the high-quality development of China’s economy in the process of urbanization.Firstly,this paper expounds the research background and significance,research contents and methods,combs the relevant domestic and foreign literature,and then analyzes the research status of financial education expenditure,urbanization and urban-rural income gap.Finally,this paper makes an empirical analysis from the perspective of dynamic panel model and panel threshold model.From the empirical results of the dynamic panel model,the improvement of the level of urbanization can significantly narrow the urban-rural income gap.The impact coefficient of fiscal and educational expenditure on the urban-rural income gap is positive,and the synergy between the two promotes the expansion of the urban-rural income gap.In the model,the influence coefficients of the lag period(l.gap)of the explained variables are positive and less than 1,which also shows that the urban-rural income gap of the previous year will have a positive impact on the current period,and the specific influence coefficient is about 0.8287.After adding the interactive term of urbanization and fiscal education expenditure,urbanization has a stronger effect on narrowing the income gap between urban and rural areas,and fiscal education expenditure has a stronger effect on widening the income gap between urban and rural areas.From the empirical results of panel threshold model,taking urbanization as the threshold variable,there is a single threshold effect of fiscal education expenditure on urban-rural income gap.Specifically,it can be divided into two stages: when the level of urbanization is low,the level of fiscal education expenditure has a positive effect on the urban-rural income gap.When urbanization develops to a certain level,the level of urbanization crosses the threshold.The level of fiscal education expenditure is still a significant positive relationship for the urban-rural income gap,but the intensity of the effect is strengthened.In the two models,the influence coefficient sign of the control variable on the explained variable is the same,and the effect is the same.The level of economic development and the scale of government have a reverse effect on the urban-rural income gap,and industrial upgrading,industrialization level and transportation infrastructure have a significant positive relationship with the urban-rural income gap.Finally,according to the empirical results,this paper puts forward the following four suggestions on how to narrow the income gap between urban and rural areas: 1Promote the construction of urbanization and promote economic development with cities and towns;2.Coordinate the development of urban and rural education and drive the rural economy with education;3.Accelerate the optimization and upgrading of industrial structure to promote the transformation of urban economy;4.Vigorously develop the rural economy and expand the scale of government.