Analysis On China's Income Gap Between Urban And Rural Areas

Since the reform and opening, China's economic grows rapidly, the living standards of people generally improves, the people live in poverty reduce substantially. All of these create a "growth miracle."With the improvement of people's living standards, the income gap assumes increasing tendency. The income gap of urban, rural areas and groups is increasing, which gradually makes the social contradictions become obvious. One of the largest contributions to overall income inequality is urban-rural income gap. The widening income gap between urban and rural areas is contrary to the goal of building a harmonious society in China. It has also become an important practical problem which disturbs China's economic and social development.This paper combines the theoretical analysis with quantitative analysis to research on the income gap of general and each area. The analysis mainly contains three aspects: (1) To review the income distribution and the main research of income gap methods. Then introduces income distribution theory from two angles :the size distribution and the function distribution .Second, to review research method of income gap from three angles: the income distribution curve, the income gap and income gap measure indicators of the group decomposition, to provide theoretical basis for subsequent empirical analysis.(2)Comprehensively use the income gap measure and the decomposition method, based on the urban-rural income data of 31 provinces, municipalities and autonomous regions after the reform and opening up, part of the year of the urban-rural income data, this paper analyzes the income gap between urban and rural areas. In addition, the part of the market index also combines the method of analysis of regional income gap. The analysis shows that the central and western regions have low equity than the eastern region. (3) Finally, from an economic development perspective and the perspective of the impact of urban-rural income gap analysis of the factors, the analysis shows urban-rural income gap in China's economic development and institutional factors when the dual role of the results. Through the panel regression model, economic development, factor accumulation, institutional factors and changes in economic structure and the impact on the urban-rural income gap is tested. Panel regression results shows that the investment, welfare expenditures, fiscal decentralization and other factors can reduce the urban-rural income gap, financial development, urbanization and the regional differences and other factors shows different impact for different areas.The main contribution of this paper is to review the measure indicators of the income gap and income gap between the main decomposition methods, provides a guide for the following-up study. In addition, this paper based on the data of rural-urban income gap of 31 provinces to analysis the income gap between city and country , to supplement the shortage of most literature research which just focus on the overall research and neglect regional studies. Finally, based on panel data analysis, compared the impacts of the various regions under the influence of each factor, which enrich the empirical research of urban-rural income gap.