A Study On The Influence Of Industrial Structure On Income Gap Between Urban And Rural Residents In Shanxi Province

Industrial structure is an important factor which will affect the income gap of urban and rural residents. The change of industrial structure will cause income change between departments, between industries, between urban and rural. For a long time, the resources industry is the leading industry in the economy development of Shanxi Province. The imbalance of industrial structure and the appearance of “de-industrialization” lead to the change of employment structure which will expand the income gap between urban and rural. Therefore, the optimization and upgrading of industrial structure in Shanxi Province, not only relates to the sustainable development of economy in Shanxi Province, but also relates to the social harmony and stability of Shanxi Province.In this paper, according to industry functional division method, combined with the actual situation of industrial development in Shanxi Province, the industrial structure is divided into resources industry with non-resources industry, attempting to analyze the change of residents’ income gap between urban and rural areas in Shanxi Province from the Angle of the industrial structure.Firstly, the paper discusses the general theory of industrial structure and distribution of income, using the theory of modern economic growth in the Solow model to analyze the influence of industrial structure change on the income gap between urban and rural, meanwhile, analyze the influence path of industrial structure on income gap between urban and rural that means industrial structure affect the employment structure, which ultimately affect income of urban and rural residents. Secondly, analyzing the current situation of the development of industry of Shanxi Province, it is concluded that resource-based industry dominated and the development of non-resources industry is insufficient. At the same time, analyzing the variation trend of income gap between urban and rural from the reform and opening up, showing that the income gap between urban rural areas has been increasing from the absolute index and has been increasing in a “W” shape from the relative index. On this basis, using the method of multiple regression to test analysis of relationship between industrial structure and the income gap between urban and rural areas. It is concluded that the development of non-resources industry helps narrow the income gap between the urban and rural residents. Further, the deviation degree analysis method is adopted, analyzing the coordination degree of industrial structure and employment structure, concluded that the tertiary industry in the non-resources industry, and non-resources related industries in the second industry is an important way of transferring rural surplus labor force and is an important approach to narrowing the income gap between urban and rural areas.Based on the empirical analysis results, to narrow the income gap between the urban and rural residents, and to promote the optimization and upgrading of industrial structure in Shanxi Province, putting forward to adjust the non-resources industry internal structure, speed up the development of non-resources industry, balance the development of resources industry and non-resources industry and guide the production factors to the non-resources industry.