An Empirical Analysis On Urban-rural Income Gap And Influence Factors Of China

This paper puts focus on how to improve the rural households' income, and narrow the urban-rural income gap. Firstly, the paper analyzes the urban-rural income gap in China from the time series and regional points of view, predicts the trend of urban-rural income gap, and describes the possible consequences; Secondly, the paper analyzes the influence factors of urban-rural income gap from the angles of sources of income, industrial structure, and policy and systems. Canonical correlation analysis is applied to do quantitative research, and following conclusions are drown:average year of schooling received by rural labor force is the most important influence factor, followed by the rate of urbanization and the proportion of financial support for agriculture. The smallest correlation is the price rate of industrial and agricultural commodities; Thirdly, by calculating the correlation coefficient of the national and provincial urban-rural income ratio and Ward, the paper selects three typical regions, and does comparative analysis on influence factors of urban-rural income gap in these areas; Finally, relevant suggestions are given based on the findings of the research to narrow the urban-rural income gap and promote urban-rural co-ordinate development, including that increasing investment in education in rural areas, promoting the process of urbanization, and developing regional economy.