Study On Income Gap Between The Urban And Rural Areas In The Period Of China Transition

The society pays highly attention to Income Gap between the urban and rural areas at present, based on theory of dual economy development and theory of region economy development, etc. the author uses many analyzing ways and studies it in China transition period.Income gap between the urban and rural areas increases greatly in the period of transitions; From time to time,it comes through smallness to bigness, its change presents some phase characteristic.The consumption gap is becoming big between the urban and rural areas residents; Income growth of the urban residents is faster than that of the rural residents, and it is larger. It's enlarging has many negative effects on development of economy and society: decrease consume demand and restrain the economy growth; What's more,debase the efficiency of investment on economy growth; Block the development of the third industry in China; do harm to building of harmony society.There are some main factors influencing the income gap between the urban and rural areas: institution, influence of institution variance in different phase, imbalance development in district, dual economic structure between the urban and rural areas,growth of economy, level in urbanization, opening to the foreign countries ,human capital. Developing heavy industry first is the history root. A series of institutions that China implements widen its gap, including dual price policy, tax policy, etc. And its change of different phase is related to variance of institution seriously. Imbalance Development in district enhances the dual structure between urban and rural areas.In the period of transitions in China, some factors increase its gap including strengthening of dual economic structure and finance policy oriented city of the government, etc. Other factors lessen its gap including economy growing and rise of level in urbanization.The developed countries have much experience in lessening the income gap between the urban and rural areas. They have realized the displace of the Residual labor force; they have developed the modern agriculture and paid attention to progress of agriculture technology; they have realized urbanization and integrated the urban areas and rural areas; they have established tactic and policy of development according to their resources; they have made the people equal; they have attached importance to the second income distribution and the investment of rural human capital; They have thought much of human capital exploitation and improved the quality of the labor force; Harmony development in district has improved the dual structure between urban and rural areas.Many theories(including dual economy development and new institution economics , etc.) provide us for many rich theories, drawing on practice of some developed countries, relating to reality of China, we must put forward many measures as follows: we must break dual economic structure between the urban and rural areas and push the process of urbanization; choose the new way to the urbanization and accelerate the shift of residual labor force;Harmonize development in the districts. Decrease it with institution reform: we must better and regulate some distribution systems and make urban people and rural people have the same opportunity; we will reinforce the reform of finance and taxation and provide much public goods for the rural areas; we must improve the system of the rural finance and establish the rural social insurance system; we must add much human capital investment to the rural areas; and we will innovate the household register system and build an unite labor market; We must improve the land rights of rural areas and establish a labor exchange market gradually,in the end, we must reduce birthrate in rural areas .