GAN Xingqiong,etc:An Empirical Study on Fiscal Incentives of Local Governments in Supply of Public Services for Migrant Population in China

Abstract：As the main body for supply of public services for migrant population, local governments tend to be stimulated and guided by their own fiscal incentives in supply of public services. In the background of further promoting household registration reform, this paper conducts empirical analysis based on provincial panel data and finds that: first, local governments do have the tendency to provide public service in accordance with household registration, so the migrant population may be discriminated; second, the allocation of some fiscal resources does not reflect the needs of migrant population, the increase of migrant population in one area leads to the decrease trend of per capita transfer payments and per capita tax revenue. These two aspects have showed that there have been distortions in supply of public services for migrant population by local governments. In fact, the fiscal incentives of local governments originate from the existing fiscal system. It will be a key to improve the existing fiscal system and other relevant institutions in order to encourage local governments to provide public services for migrant population positively.

Key words： Public Services for Migrant Population    Household Registration System    Local Government Behaviors   Fiscal Incentive    Fiscal System

source:Finance & Trade Economics ,No.10,2015