Abstract:In 2017，Shandong widely deepened its income distribution reform. By completing the system of the proactive employment policies，optimizing the distribution mechanism in which labor，skills，techniques and knowledge are involved，and giving full play to finance，transfer payment，social insurance and so on，Shandong standardized its distribution order and rationalized the structure of its income distribution. The entire social distribution was rather equitable：The low share of labor remuneration in initial distribution has been raised；both of the urban and rural residents’ income has been steadily increasing；the urban-rural gap has been reduced and the monopoly earnings have been suppressed. Nevertheless，the income gap between urban and rural residents still faces a risk of being expanded at any time because of the downward economy’s restriction against the income growth，especially against that of the rural residents. Meanwhile，the unbalanced regional development has reemerged，and the fiscal revenue has plunged for recent years，which lead to questions over the patterns of the financial adjustment under the rigid increase of livelihood needs that might haunt Shandong in coming years. In 2018，with the strategy of the employment and talents priority deeply implemented in income distribution field，Shandong would apply multiple motivation measures，establishing a long-term mechanism to steadily increase residents’ income，greatly improve low-income group’s earning level and constantly expand middle-income group，in order to strengthen people’s sense of fulfillment.
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