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Effects of urbanization on the differentiation between the rich and the poor urban residents
Author(s): 
Pages: 4-11
Year: Issue:  10
Journal: Urban Problems

Keyword:  urbanizationwealth distributionwealth division;
Abstract: In the process of comprehensive and rapid development of urbanization,the pattern of Chinese social benefit’s distribution has undergone a lot of profound changes,such that the polarization between the rich and the poor residents is of importance to characterize the social reality. Herein,from the perspective of three dimensions( i. e. population,space and economy) of urbanization,this essay conducts comparative analysis of their impact on the differentiation of social wealth and differences in the resultant effects,by using both Granger non-causality test and Johansen co- integration test,in order to address the question of whether urbanization is allowed for exacerbation or mitigation of the social wealth division. As a result,it is firstly revealed that the urbanization of the population,through the disadvantage and advantage of backwardness and relevant interactions with the inequality of distribution of wealth inherent in the city,has exacerbated the urban social polarization between the rich and the poor. Secondly,the leverage effect of spatial urbanization has further expanded the initial wealth- endowed gap between the post- urbanized residents and urban aborigines.Thirdly,the economic urbanization renders its element allocation pattern to achieve the Pareto improvement,such that the space of pay gap between unreasonable elements is squeezed,so as to ease the polarization between the rich and the poor residing in urban society.
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