Impacts of China’s Social Security on Urban–Rural Income Gap
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Chiu-Lan Chang and Fang Ming
This paper analyzes the effect of social security to regulate the income distribution of urban residents from 2007 to 2017 in Fujian Province of China. This study introduces the concept of “bad index” and compares the proportion of per capita net income and per capita social security income of different income households. The income redistribution effect of social security shows a phenomenon of “reverse adjustment” between urban-rural low-income households and high-income household. The investigation finds that social security has further widened the urban–rural income gap due to insufficient investments in social security and unreasonable expenditure structures. The results suggest that the government should adopt a series of measures to increase the financial investment in social security and to improve the coverage of social security system.
Green Bonds; Green Finance; Financial Reforms