Research On The Impact Of Financial Livelihood Expenditure On The Income Gap Between Urban And Rural Residents In China

Statistics in recent years show that the income gap between urban and rural residents in China has always been at a relatively high level.If we add the gap between urban and rural residents in education,medical care,social security and other livelihood services,the income gap between urban and rural residents will be even larger.The imbalance of urban-rural dual structure has always been an important factor affecting the level of social and economic development in China,and also the key factor affecting the goal of achieving common prosperity put forward by the Party’s 20 th National Congress.Of course,fundamentally speaking,improving the productivity of "agriculture,rural areas,and farmers" is an important measure to safeguard the goal of common prosperity.However,in the current situation where a large amount of fiscal expenditure on people’s livelihood occurs and the effect needs to be further improved,it is especially necessary to explore the mechanism of fiscal expenditure on people’s livelihood on the income gap between urban and rural residents,and how to better narrow the income gap between urban and rural residents.This article examines the issue from a financial perspective.First of all,this paper reviews relevant domestic and foreign literature,defines the income gap between urban and rural residents,and combines the current situation of China with Rawls’ justice theory,Pigou’s welfare economics and Schulz’s human capital theory to analyze the impact mechanism of fiscal expenditure on people’s livelihood on the income gap between urban and rural residents.Then,using the official data of the National Bureau of Statistics to measure the income gap between urban and rural residents,such as the Teal index and urban-rural income ratio,establish the two-way fixed effect model and the intermediary effect model,and conduct an empirical study on the direction and mechanism of the impact of fiscal expenditure on people’s livelihood on the income gap between urban and rural residents,and introduce regional and time factors into the model.To explore the impact of fiscal expenditure on the income gap between urban and rural residents.The empirical results show that fiscal expenditure on people’s livelihood can narrow the income gap between urban and rural residents by influencing the accumulation of human capital,which is an intermediary variable.However,this effect presents strong heterogeneity in terms of region and time: the narrowing effect is significant in high-income and low-income provinces,while the narrowing effect is not significant in middle-income provinces.Before the economy entered the "new normal"(2007-2014),the fiscal expenditure on people’s livelihood could significantly narrow the income gap between urban and rural residents,but after the "new normal"(2014),the fiscal expenditure on people’s livelihood had a weak effect.Finally,this paper proposes to take reasonable measures to maintain the growth of local government fiscal expenditure on people’s livelihood,pay more attention to optimizing the structure of fiscal expenditure on people’s livelihood under the new normal of economy,and improve the quality of expenditure on the premise of ensuring the scale of expenditure on education,medical care and social security.For regions at different levels of economic development,local governments should formulate fiscal and livelihood spending strategies with different priorities in light of local conditions,narrow the income gap between urban and rural residents,and contribute to the goal of achieving common prosperity.