Institutional Factors And The Countermeasure Analysis Of Urban-rural Income Gap In China

Income distribution is a constant topic of economics, Ricardo, Marx, Kuznets, Lewis and other economists paid great attention to the subject. Around the world many economists have expressed their views about the theory of income distribution since the early 20th century, but still have not got a satisfactory theory of income distribution, the distribution of income has become one of the vexed issues of economic. Income gap is also the social focal point that world people are extremely concerned about. So as to China that is undergoing institutional transition. China has traditional culture called"Inequality rather than want is the cause of trouble", so our socialist state ideology can not tolerate too much more than other countries to the inequality, public opinions expressed strongly concerns to the income gap among Chinese residents.China's economy has kept consecutive rapid growth since the reform and opening up for 30 years, and has made remarkable achievements in economic development. From 1978 to 2010, GDP of China increased from 364.5 billion to 39.7983 trillion, not only the total economy has been enhanced enormously, but the gross national income per capita has got rapid growth from 190 dollars in 1978 to 4400 dollars in 2010. On the whole the living standard of urban and rural residents has greatly improved, but the problem that can not be overlooked is that people's income gap is widening with the rapid and stable economic development, especially the income disparity between urban and rural has expanded significantly. The income ratio of urban-rural that was 2.51 times in 1998 expanded to 3.23 times in 2010, the actual income gap has reached a record high of 13,190 Yuan. Then this gap will threaten the China's future economic development and social stability. The continuous increase gap between urban and rural income best reflects the dual economic structure of China. The rising social inequities will gradually constrain the further harmonious development of economic and social. Main reasons for the income imbalance between urban and rural are stated blow: 1. Dual economic structure with fragmented development of urban and rural; 2.The strategy prior to the development of industry and urban; 3.The inadequate rural input; 4.The education gap between urban and rural etc. Hence it is necessary to balance the income gap by eliminating the dual economic structure, accelerating new rural construction, enlarging the rural investment in education, fastening the pace of urbanization etc. The innovation paths will promote the regional social coordinated development of urban and rural economies. Firstly, the causes of China's urban-rural income gap will be analyzed deeply. It puts forward some rational and feasible advice to balance the income gap between urban and rural areas of China based on the experiences and lessons that coordinating Urban-Rural development of foreign countries. The main institutional paths includes the reform of the dualistic structure between urban and rural areas, the construction of land system with clear property, the security system to protect the fair of urban and rural, the innovation of labor system with no isolation between urban and rural, the integrated educational system, the promotion to develop market-oriented agriculture and industrialization, the accelerated urbanization process and so on. To balance the gap between urban and rural areas can not only reflect social justice, but also add new impetus to the continued prosperity of China.