The Analysis And Resolution Of The Income Gap Between The Urban And Rural Residents Of Tai'an

The large of urban-rural income gap has become an important factor which constraint overall economic performance and impact social stability. The Third and Fourth plenary Session further puts forward to a major task to construct a socialist harmonious society, which including an intension in urban and rural income gap. Therefore, researching the issues of the income gap between urban and rural residents have strategic importance.In this paper, taking Tai'an City for example, we use the methods of normative analysis and empirical analysis, research the issues of urban-rural income gap, and reached the following conclusions:First, based on defining the concept of urban-rural income the, introduce the theory related to urban-rural income gap. Such as: dual economy theory, Kuznets inverted "U" shaped theory, Marxist theory of income distribution and so on.Second, through analyzing the income gap between urban and rural residents of Tai'an City's ,we think it derived from the reform and opening up of more than 1.89 times (1985) expanded to 2.68 times in 2009,at the same time, the sources of income between urban and rural residents are quite different.Third, we make it clear that urban-rural income gap in Tai'an City will continue to exist in the short term, but in the long term it will be eased. Since the Government introduced a series of narrowing the income gap between urban and rural policies, and these policies take a long time to play role in this problem, also the deep-rooted historical problems as solid hoof in Tai'an City has expanded the short term trend, so in the long term will moderating.Fourth,by analysising the reasons for urban-rural income gap in Tai'an City, We believe that include both of macroeconomic policies, and micro level, both historical and cultural reasons, also some economic factors. Specifically: First, historical and cultural heritage; the second is the dual economic structure constraints, which is caused as the main reason for urban-rural income gap; third is system to promote; Fourth, the economic institutional arrangements, mainly social security system, education system, etc. ; fifth is impact of economic policies, including fiscal policy, monetary policy, financial policy; sixth is other relevant factors, such as the irrational industrial structure of agriculture, urbanization of rural backwardness. Fifth, as the income gap between urban and rural residents will expand ,it must result a number of adverse consequences, the first let itself fall into vicious circle, followed it will limit solving the problems of Rural issues, finally, slow down the speed of economic development and so on.Sixth, proposed measures to narrow the income gap between urban and rural. The basic conditions including: First, updating the concept of government management, reforming the existing management system; second, improving the supply of public goods, building the basis of income growth of farmers; third, improving rural social security system. Main measures are: First, innovating the rural land system and revitalizing the rural land assets; second, optimizing the industrial structure in rural areas; Third, promoting the process of urbanization in rural areas, transferring the rural surplus labor. Related measures includ adjusting the tax policy in rural, reformming the system of employment, and developing the rural education.