Four Decades of China's Income Distribution Reform

Income gaps in China kept widening over the past four decades of economic transition. First, this paper describes the change in income gaps before and after reform and opening-up in 1978 and found that income gaps had been expanding between urban and rural areas, within cities and within the countryside. However, this did not lead to income polarization since low-income groups only had a slower income growth compared with highincome groups. The number of poor people continuously reduced thanks to rapid economic growth. Over the past decade, the widening of income gaps has been initially curbed. Accordingly, we explained the impact of economic transition on income distribution from the perspectives of market-based distribution, ownership structure, opening-up and internal income distribution. Lastly, this paper provides an in-depth analysis on urban-rural income gaps, excessive compensation in monopolistic sectors and income inequalities arising from corruption. To address these problems, it is important to enhance tax regulation, increase transfer payments to poor people, improve social security, equalize public services, enhance poverty relief and develop a fairer income distribution system.

Effects of Social Security Spending on Income Distribution and Poverty Reduction in China

Reasonable income distribution and eradication of rural poverty are vital for building a moderately prosperous society in all respects in China.This paper primarily examines the income distribution and poverty reduction effects of social security spending.Market income and redistribution policies are two determinants of income gaps.Based on CHIP2018 household survey data,we find that inadequate income redistribution policies have contributed to yawning income gaps,and that social security spending is more redistributive than personal income tax and social security contributions.After estimating the redistribution effects of social security spending and itemized incomes,we find that pension payments have contributed the most to household income gaps,and that subsistence protection and rural pension payments help improve income distribution.With respect to the poverty reduction effects of social security spending,we have estimated China’s current poverty incidence and the poverty reduction effects of pension payments,healthcare,and educational allowances with CHIP2018 data,and discover that an increase in social security spending may effectively reduce rural poverty.In building a moderately prosperous society in all respects,China should increase social security spending,focusing on specific target groups,and promote the role of social security spending in regulating income distribution and offering social protection to rural residents.

Wage and Income Distribution in China:Review and Outlook

Under the planned economy,China’s distribution relations were relations among the state,state-run enterprises,employees and the collective economy;relations between heavy industry and light industry;and relations between cities and the countryside.After China’s transition to a market-oriented economy,the distribution relations among the state,state-run enterprises and employees evolved into distribution relations between the government,enterprises and households;the distribution relations between heavy industry and light industry evolved into distribution relations between the state sector and the private sector;and the distribution relations between cities and the countryside evolved into distribution relations between original urban dwellers and migrant populations.Wage system reform was carried out throughout the transition of these three types of distribution relations.Income distribution contradictions in China,which are a problem left over from history and intrinsic to the market-based economy,eased over the years.Some people and regions achieved prosperity,and urban-rural and interregional income gaps narrowed.However,widening household income gaps pose barriers to China’s economic sustainability and vision of building a moderately prosperous society in all respects.Mechanisms to promote common prosperity are incomplete and inadequate.The disequilibrium of functional distribution is an important cause of these income inequalities.The overall wage level of ordinary workers is low.In the future,China'should give full play to the decisive role of the market in primary distribution to ensure proper return to all types of factors,and enhance redistribution to achieve common prosperity for all its people.

On Income Distribution Mechanism of Farmer Cooperatives in the Context of Membership Heterogeneity

With reference to several possible solutions to the issue of two subject allocation,using the Accumulation Point analysis method in Game Theory,this paper analyzed the income distribution mechanism between large farmers and small farmers in farmer cooperatives in the context of membership heterogeneity. It found that,in the practice of the income distribution in farmer cooperatives,there possibly exists equalization solution,pure utility solution,Nash solution and Kalai-Smorodinsky solution and it will be affected by social conventions. Finally,it made an empirical analysis using five cases of farmer cooperatives.

Establishment and optimization of project investment risk income models on the basis of probability χ distribution

In this paper, two kinds of models are presented and optimized for project investment risk income on the basis of probability χ distribution. One kind of model being proved has only a maximal value and another kind being proved has no extreme values.

Modelling of Wage and Income Distributions Using the Method of L-Moments

Commonly used statistical procedure to describe the observed statistical sets is to use their conventional moments or cumulants. When choosing an appropriate parametric distribution for the data set is typically that parameters of a parametric distribution are estimated using the moment method of creating a system of equations in which the sample conventional moments lay in the equality of the corresponding moments of the theoretical distribution. However, the moment method of parameter estimation is not always convenient, especially for small samples. An alternative approach is based on the use of other characteristics, which the author calls L-moments. L-moments are analogous to conventional moments, but they are based on linear combinations of order statistics, i.e., L-statistics. Using L-moments is theoretically preferable to the conventional moments and consists in the fact that L-moments characterize a wider range of distribution. When estimating from sample L-moments, L-moments are more robust to the presence of outliers in the data. Experience also shows that, compared to conventional moments, L-moments are less prone to bias of estimation. Parameter estimates obtained using L-moments are mainly in the case of small samples often even more accurate than estimates of parameters made by maximum likelihood method. Using the method of L-moments in the case of small data sets from the meteorology is primarily known in statistical literature. This paper deals with the use of L-moments in the case for large data sets of income distribution （individual data） and wage distribution （data are ordered to form of interval frequency distribution of extreme open intervals）. This paper also presents a comparison of the accuracy of the method of L-moments with an accuracy of other methods of point estimation of parameters of parametric probability distribution in the case of large data sets of individual data and data ordered to form of interval frequency distribution.

Policy Recommendations for Balancing Income Distribution

Currently,the economic growth of China is mainly driven by investment and net export.The reason behind this is the distortion of our income distribution mechanism.The expansion of income gap and the uncertainty of expectation lead to a high savings rate,while the high savings rate should be balanced by investment and high export.As a matter of fact,the situation of high profit and tow wage in first the distribution induce the fast growth of investment and export.This will definitely bring excess capacity,an adverse selection of industries and affect the sustainable development of economy.To support the above argument,quantitative analysis is made with macro-economy indices.and suggestions to improve economy are provided.

The Empirical Analysis of the Impacts of Income Distribution Gap on Consumption Demand:Based on the Statistic Data of Chinese Urban Residents in 2000-2010

This paper analyzes the impact of income distribution gap on consumption demand from a theoretical view,and draws the conclusion that there is an inverse relationship between income distribution gap and consumption demand.Then,the paper finds that the existing widening income distribution gap in China has a negative impact on consumption demand,but this is not the key factor for the insufficient consumption demand because of the low level of per capital income.At last,it suggests that governments should improve the income level of entire residents and adjust income distribution structure simultaneously.

Empirical analysis of influence on economic growth of China by income distribution difference

Based on a theoretic hypothesis that income inequality has both positive and negative effect on economic growth, this paper analyzes the influence of income distribution differences on economic growth of China by establishing a multivariate linear regression model. The influence of income distribution difference on the economic growth of China changes with the change of time. During a short period immediately after China implemented reform and opening up policy, income inequality has a positive influence on the economic growth of China. However, along with the passing of time, such positive influence has become weaker and weaker and even convertes into negative effective. This paper proposes several advices with policy to restrain the difference of income distribution from expanding and weaken its negative effect on economic growth of China.

China＇s Current income Distribution Status and Countermeasures Analysis

From two perspectives, - the proportion of residential income and the equality of residential income distribution - this paper identifies a widening gap in China＇s income distribution and considers that this is a result of different factors such as technological progress, increasing return on assets, the economic growth priority strategy of local governments, the increasing number of migrant workers who are in a weak position to negotiate wages, as well as the rapid process of industrialization. Based on the above analysis, this paper presents policy recommendations on how to improve the income distribution system.

Capitalization of Productive Factors and Income Distribution Problems - Unraveling the Cruxof China＇s Income

When observing China＇s income distribution problems .from an international perspective, we find that China＇s income inequality is not much different from developed countries after primary distribution. The real difference between China and developed countries is that income inequality in developed countries will reduce greatly after income redistribution while the income inequality remains the same for China. Therefore, one can conclude that income inequality in China derives from the ineffectiveness of redistribution. However, a large income gap is not the main reason for skewed income distribution in China. In fact, the problem lies in unfair distribution resulting from factor capitalization. A handful of people have taken proceeds from public assets at the expense of all the people, which has led to social poIarization. To remove unfair distribution, China should improve its means of redistribution to narrow its income gap in order to develop a fair and reasonable pattern of income distribution.

A Theoretical Explanation of the Causes of Popular Elements and Income Power Law Distribution Based on Data Analysis

The known statistical data show that the distribution of popular elements and people’s income presents the characteristics of power law distribution.At present,the explanation for this phenomenon is mostly through the“rich get richer”theory,but the author believes that this theory has major flaws and fails to provide a reasonable explanation for many phenomena.Therefore,the author expands some empirical and recognized theories in a similar direction in logic,and derives a logical mathematical model through the derivation of mathematical formulas,so as to explain the phenomenon that the distribution of popular elements and people’s income presents a power-law distribution.Then,by analyzing various characteristics of social networks and comparing them with some phenomena in nature,the conclusion can be extended to all self-organizing groups in nature.

Distribution of Land Increment Income from Marketing Rural Collective Land for Development Purposes : A Case Study of Changyuan City

In order to protect the property rights and interests of farmers,promote the revitalization and development of rural areas,and provide a reference basis for the reform of marketing rural collective land for development purposes,this study explores the reasonable distribution proportion of land increment income from marketing rural collective land for development purposes through analytic hierarchy process and Delphi expert scoring method.The results show that there is a positive correlation between land increment income and land grade,that is,the higher the land grade,the higher the increment income,the larger the proportion of increment income to the transaction price.According to the calculation,when marketing rural collective land for development purposes,the reasonable distribution proportion of the land increment income of the government and the village collective is 28.6%and 71.4%,respectively,and the land increment income actually obtained by farmers has been greatly improved compared with the current situation.In practice,this distribution model has universal applicability and long-term mechanism.The reform of marketing also needs to improve the standard of marketing,explore diversified channels to protect interests,and strengthen the construction of rural collective management system.In short,the distribution of land increment income from marketing rural collective land for development purposes should proceed from the perspective of land property rights and the factors affecting the price of collective land for development purposes,in order to build a reasonable income distribution model.

On the Reasons and Strategies about the Expansion of Present China＇s Income Distribution Gap

In recent years, the disparity of Chinese people＇s income has been unsteadily expanding. The reasons lie in many aspects, among which there are mainly income disparity between the rural and the urban and the disparity between regions, including the disparity between people both in the city and in the countryside. Therefore the corresponding strategies should be put into effect .

China＇s National Income Distribution in the New Normal：Characteristics,Contradictions and Reforms

This paper discusses the evolution and characteristics of China's national income distribution structure after the dawn of the new century and particularly in China's new normal of social and economic development. This paper casts light on the profound national income distribution and redistribution effects of changing ownership and economic reforms, as well as the microscopic household income distribution effects of changes in macroscopic distribution structure. Based on an analysis of changes in macroscopic distribution pattern, this paper explains the structural contradictions of national income distribution in China and their effects on China's economy, providing a theoretical analysis of income distribution for deepening supply-side structural reform.

Income distribution policy options amid the global financial crisis

This statistics-based study shows that in China the urban-rural income gap is contributing more to general income inequality than regional income gaps are. The regional income disparity sets in an east-west plus central contrast while the urban-rural gap is most significantly present in the west and central areas between the cities and the countryside. Rural migrant laborers have helped shrink the urban-rural and regional income gaps. However, when the economy is hit by the global financial crisis to slow, a number of public actions are crucial and urgent to reduce income inequality and enhance social stability. The actions would include an immediate social bail-out and provisions for social security for rural-based migrants currently working in the cities, employment programs targeting low-income group as well as encouraging entrepreneurship.

Financial Coordination and Income Distribution of Agricultural Supply Chain

The agriculture field is a fundamental industry which supports the rapid development of the nation?s economy.However,credit constraints faced by farmers have restricted the modernization in the agricultural industry.The agricultural supply chain finance is effective in promoting rural industrial revitalization and agricultural modernization,which is of great significance to the transformation and development of rural economy and agriculture in China.In this paper,the financial coordination model in agricultural supply chain is constructed,and the income distribution model of Shapley value method is introduced.The results showed that the agricultural supply chain finance can significantly improve the income of the participants in the agricultural industrial chain and verify the economic feasibility of agricultural supply chain finance.

Research on the Distribution of Incremental Benefits from the Entry of Collective Construction Land into the Market

In this paper,based on the process data of evaluating the benchmark land prices of collective construction land and agricultural land,the score of influencing factors is calculated,and a regression model between value-added benefits and influencing factors is established.According to the contribution of the government and collectives to value-added benefits,the distribution proportions of different purposes and levels are calculated.The research results show that there are significant differences in the distribution proportion of value-added income among different levels.The government distribution proportion decreases with the decrease of level,while the collective distribution proportion increases with the decrease of level.For each level of decrease in commercial service industry land and industrial and mining warehousing industry land,the government distribution proportion decreases by an average of 2.66%and 2.34%,while the collective distribution proportion increases by an average of 2.66%and 2.34%,respectively.The average distribution proportion of the government in the value-added income of commercial service industry land is 31.58%,which is much higher than the average income of 23.68%in the value-added income of industrial and mining warehousing industry land.

The Approaches to Narrowing Urban-Rural Income Gap——From the Perspective of Rural Social Security

From the situations about the incomes and life quality of the urban and rural residents,the thesis briefly introduces the status quo of the urban-rural income gap and explores the impact of the income gap on social economy:firstly,it hampers economic development;secondly,it is detrimental to the social development.Then the thesis analyzes the role of a sound social security in narrowing urban-rural income gap:at first,it broadens the institutional environment of improving the agricultural efficiency;secondly,it eliminates the uncertainties influencing the farmers' income;thirdly,it improves the farmers' capacity to increase income;at last,it enhances the farmers' consciousness of wealth.Next the thesis inquires into the problems existing in the system of rural social security:the first problem is more obviously fragmented system;the second is inadequate security projects and narrower coverage;the third is an obvious lack of equality in urban and rural security;the fourth is even less sound management system;the last is the lagging of legislation.Afterwards the thesis proposes the countermeasures and suggestions to improve the system of rural social security and narrow urban-rural income gap:firstly,to integrate the social security system in rural areas;secondly,to perfect security projects and enhance the security system;thirdly,to integrate the administrative management of social security;at last,to enforce the legal system.