China's urban-rural income gap has long existed. Especially since the reform and opening up, with the deepening of economic reform, the income of residents in rural has been growing rapidly, while the gap has been widening, which aroused people's more and more attention. Large income gap between urban and rural residents has become an important factor that constrains to our economy operation, and an obstacle of building a well-off and harmonious society. For China who is transforming towards modernization, the expansion of income gap between urban and rural residents can not be simply explained from the economic aspect, it should result from the joint efforts of natural, social, human, and systematical factors among the course of economic development. By analyzing the causes and the effects of urban-rural income gap, and exploring the measures and ways of narrowing the urban-rural income gap, it brings practical significance to the realization of the sustained, rapid, healthy and stable development of our country's economy and the improvement of people's living standards and quality.This paper studies China's current urban-rural income distribution gap by referring to the rational factors of the related Western theory. In chapter one, the author mainly explains the purpose and motivations of writing this paper, and describes the major research on this issue of both domestic and international. In chapter two, the author describes the relative income distribution theory. Lorenz curve, Gini coefficient, and the Kuznets's "inverted U theory" provide a reference for the study of the urban-rural income gap. The author compares the urban-rural income gap from the perspectives of the dominant and hidden income, analyzes the five stages of since the reforms, and makes an in-depth analysis in four parts: wage income, business income, property income, transfer income. In Chapter three, on basis of the above, the author studies the production and its gradually expanding affects and consequences of the income gap between urban and rural residents from a broad perspective. It can be divided into four big impacts, namely: the impact on the agriculture and the rural economic development and modernization; the impact on the sustained development of the urban economic; the impact on prices; and the impact on the social equity, justice and stability. The purpose is to raise people's awareness that solving the growing income gap problem of current China's has reached a critical state.In Chapter four, the author points out that the development model of the dual economic structure and the institutional barriers of restricting farmer's income institutional barriers are the root causes, direct causes and deep-seated reasons of the beginning and expanding of the income distribution between urban and rural residents in China. Finally, the author mainly puts forward countermeasures on how to narrow the urban-rural income distribution gap from the system level ,that is ,to establish the scientific concept of development, and make institutional reform and improvement on several levels of economy and politics according with the requirement of urban and rural development in order to achieve the peasants faster income growth. In particular: firstly, to reform and improve the household registration system ,and weaken the dual economic structure; Secondly, to reform rural land property rights system; Thirdly, to accelerate the process of urbanization and industrialization in China; Fourthly, to make revitalize in agricultural production, increase farmers'income, develop the non-agricultural industry, and widen the way of peasants'income; to unite the development of urban and rural areas, put every policy of the new rural construction into action, and speed up the pace of modernization of agriculture production in order to provide mechanisms promise to narrowing the income gap between urban and rural residents; Fifthly, to enrich the rural social security system in order to provide the necessary conditions for narrowing the income gap between urban and rural residents; Sixthly, to establish the agricultural insurance system in order to provide an effective way for narrowing the income gap between urban and rural residents. |