Research On Income Gap Between Urban And Rural Residents In China

China's economy has become the world's second, but China's income gap continues to expand, since 2003 the Gene coefficient has been maintained at above 0.47. that is to say the cake has done great, but the problem of sharing the cake has not been solved well. The income gap between urban and rural residents is the biggest contribution to the income gap between residents in China, and solve the problem of income gap between urban and rural residents to a great extent to ease the income gap between residents in China. This article includes five facts:the measurement and the status quo of the income gap between urban and rural residents, the causes of the gap. the influence of the gap on economic growth, the influence of the gap on the transformation of economic growth mode, the value judgment of the gap. the measures to narrow the gap.First, on the measurement and the status quo. In this paper, the income gap between urban and rural residents is measured by the ratio of the urban residents' per capita disposable income and rural residents' per capita net income. Not only the e nominal income ratio is measured, but also the actual income ratio is measured by excluding the impact of price factor. Due to the government's policy of urban bias, a large amount of public resources are allocated to urban areas. This paper also measures the government's implicit subsidies for urban residents in social security, health care, education and other aspects. In addition, the intergenerational transmission of urban-rural income gap appears in China.Second, the causes of the income gap. This paper theoretically analyses and empirically tests the causes mainly from the perspective of production factors:(1) The dual role of government policy and market competition make production factors agglomerate to the city, and the agglomeration expands the urban-rural income gap through the mechanisms such as the scale economy, capital appreciation, employment opportunities and the possession of production factors. (2) The rural land property rights is not complete, which makes the mobility of the rural land is limited, and the incomplete rights also causes the farmers not to share the value-added land benefits fairly. These all expand the urban-rural income gap. (3) The government's urban bias policy and market competition makes rural money flow out and the rural deposits can't be transformed into rural loans on the spot. Financial exclusion appears in rural areas. Because capital element is the dominant factor in economic development, the scarcity of capital in rural areas has expanded the urban-rural income gap. (4) China has carry out the urban-rural separate household registration system for a long time, which makes China's labor market separate. There are urban workers and migrant workers in labor market. The migrant workers can't enjoy the same treatment as urban workers, such as wage income, employment opportunities, social insurance and so on, which expands the urban-rural income gap. (5) Human capital investment is an important way to increase income. The government's urban-biased policy makes the difference of human capital investment between urban and rural residents. The difference of human capital investment makes individual characteristics, the rate of return on education and the production efficiency different between urban and rural residents.In addition in view of the current phenomenon of intergenerational transmission of urban-rural income gap, this paper points out that the intergenerational transmission of income is achieved through three kinds of transfer mechanisms:human capital, social capital and wealth capital. The different possession of these capitals between urban and rural residents through the intergenerational transfer machine leads to the intergenerational transmission of urban-rural income gap.Third, this paper argues that the impact of urban-rural income gap on economic growth has both positive and negative effects. The gap leads to higher rate of capital return and lower prices of export products, which promote investment and export, then promote the economic growth. The gap also makes Chinese rural consumption market in the doldrums, and blocks the economic growth. The impact of urban-rural income gap on economic growth has positive and negative effects at the same time. It is not a simple linear relationship, but a nonlinear inverted U type relationship---the lower income gap between urban and rural areas will promote economic growth, while the higher income gap will hinder economic growth.Then, the urban-rural income gap influence on the change of economic growth mode. This paper points out that the urban-rural income gap makes the urban residents' consumption tendency are less than the rural residents', resulting in a lower consume tendency on the whole, which makes the social consumption demands smaller and is not conducive to the change of China's economic growth mode, from investment driven mode to investment-consumption dual driven mode. Finally, the socialist nature of our country needs us to reduce the urban-rural income gap to achieve common prosperity, this paper gives a way to narrow the urban-rural income gap:to achieve two-way flow of production elements between urban and rural areas, to ensure the integrity of rural land property rights, to promote rural residents'financial availability, to reform the unfair household registration system, to reduce the gap of human capital investment between urban and rural areas, to avoid the intergenerational transmission of the urban-rural income gap.