Analysis of Resident’s Income Distribution from China

Abstract

Summary:

Income distribution and economic growth are the two important topics in the development of human society. Since 1970s, the Chinese reform and opening has made Chinese distribution mechanism take the fi rst step toward the distribution according to work performance basic on market economy from average distribution system and brought the rapid development of economy. However, with the deepening of reform, the unfairness of income distribution is also becoming more and more serious and has developed into a restriction of Chinese future economy. Therefore, having a correct understanding about the reasons for the enlarged gap of citizen’s income and adopting effective measures to eliminate the negative eff ect are very signifi cant to the process of reform and the positive interaction between income distribution and economic growth. Basic on this, author has analyzed the relationship between Chinese economic growth and income distribution in the transition period by empirical methods and pointed out the major reasons for the evolution of overall structure of citizen’s income gap and evolution itself. Through the empirical analysis on present situation, author has proposed related policies hoping to construct a positive cycling mechanism of income distribution and economic growth in the transition period of China.