A Discussion on the Equality Effect of Transfer Income

Through Theil index, I divide resident income inequality into three parts: the income inequality of peasants among each province, that of city dwellers among each region, that of resident between urban and rural. Then I contrast the self-income inequality with the including-transfer income inequality, analyzing othe distribution affect of transfer income. Through the positive analyzing, I find out that the income inequality in China mainly lies in the inequality between town and country, what's more, the effect transfer income aggravate the income inequality,especially the inequality between city and countryside.