Research On The Influence Of Fiscal Expenditure On Basic Education On Urban-Rural Income Gap

As socialism with Chinese characteristics towards a neway,China’s economy has changed from rapid development to high-quality development,and people’s living standards have gradually improved while the development of residents’ income still has uneven and uncoordinated problems.2021 Central Document No.1 proposed that by2025,consolidate and expand the results of poverty eradication and continue to shrink the urban-rural income gap,which is the desire of the people and is conducive to enhancing the people’s sense of access as well as happiness.As the main path of investment in human capital,financial expenditure on education has an undeniable positive effect on income growth.Basic education is the foundation for cultivating talents and improving national quality,and it is an important part of China’s education system.However,it is interesting to ponder whether the resource allocation of basic education financial expenditure,its impact on the urban-rural income gap accords with that of public education financial expenditure,and whether the importance of basic education financial expenditure can be realized through the path of promoting education equity.Therefore,this paper analyzes basic education fiscal spending and its use structure,hierarchical structure,and urbanrural structure,and examines the mechanism of action,which helps to better allocate education resources and thus work on improving the urban-rural income gap.The research and writing ideas of this paper are as follows: to establish the analytical framework of the article based on relevant theories,followed by the empirical research part of the article through two departments of descriptive statistical analysis and econometric analysis,and finally to put forward relevant policy recommendations in the context of the current situation and research findings.(1)Theoretical part: sort out the formation process of urban-rural income gap based on income distribution theory and dualistic economic structure theory,and form a theoretical system related to basic education financial expenditure based on human capital theory and public goods theory.(2)Empirical part: Based on the provincial panel data,the two-way fixed effects model is used to analyze the effects of basic education fiscal expenditure and resource allocation on the urban-rural income gap,and the robustness of the baseline regressions is also verified through the instrumental variables method,extended lag regression,replacement of the explanatory variables and tailing treatment.Further,to verify the mechanism pathways through which fiscal expenditure on basic education affects the urban-rural income gap,as well as a heterogeneity analysis to explore the differences in the role of fiscal expenditure on basic education under different geographical locations and degrees of urbanisation development.The results of the study found that:(1)The financial expenditure on basic education has a significant ameliorating effect on the urban-rural income gap.The path of basic education improving the urban-rural income gap can be realized through two paths: the optimizing effect of human capital structure,and the reducing effect of the degree of education inequality.(2)The use structure of basic education financial expenditures can be reflected as the quality of basic education to a certain extent.The use structure is classified according to four major functions: teacher funding,student financial aid,school operation and school environment improvement,and there are differences in the degree of influence of basic education financial expenditures on urban-rural income gap.Among them,teacher funding,as the embodiment of teacher strength,has the greatest degree of improvement on the urban-rural income gap,while school operation and school environment improvement also have a negative impact on the urban-rural income gap,and student financial aid does not have a significant impact on the urban-rural income gap.(3)As for the influence of the structure of basic education financial expenditures on the urban-rural income gap,elementary and junior high schools,as comprehensive and universal education,show a negative adjustment effect on the urban-rural income gap,and junior high schools improve the most,while the influence of senior high school education financial expenditures on the urban-rural income gap is not significant.(4)The urban-rural difference of basic education financial expenditure has a prominent amplified effect on the urban-rural income gap,what’s more the unequal education resources will worsen the urban-rural income gap,and the unbalanced urban-rural education financial expenditure on elementary school has the greatest negative effect on the urban-rural income gap.(5)The analysis of geographical location heterogeneity shows that basic education expenditure has a stronger effect on improving the urban-rural income gap in the central and western regions;in terms of the structure of use,school operation and school building improvement expenditure has a negative effect on reducing the urbanrural income gap in the eastern regions compared to teacher funding,while the opposite is true in the central and western regions,where teacher funding has an improving effect on the urban-rural income gap,while school operation and school building improvement do not have a significant effect;student financial assistance In the eastern region,it has a widening effect on the urban-rural income gap,while in the central and western regions,it has an improving effect.There is no significant regional heterogeneity in the impact of the hierarchical structure of basic education expenditure on the urban-rural income gap.Based on the analysis of the current state of the theory and the results of the empirical test,the following suggestions are made to improve the urban-rural income gap mainly around the resource allocation of basic education fiscal expenditure to guarantee educational equity: First,increase the proportion of social investment in education funding,form a government-led,multi-body participation source of education funding,and under the county-based under the county-based financial expenditure management system,strengthen the provincial government’s responsibility for resource allocation and improve the level of financial expenditure on basic education;Second,attach importance to basic education,optimize the structure of financial education expenditure,and change the inverted triangle structure of financial education expenditure;Third,improve the level of teachers’ remuneration and ensure balanced education teachers;Fourth,accelerate the balanced financial expenditure on basic education in urban and rural areas,and shrink the urban-rural educational gap;Fifth,actively promote the policy of "double reduction" and strengthen the role of the government in educational resource allocation;Sixth,use information technology to help the development of rural education.