To Explain The Urban-rural Income Gap

The theory of dual labor market is an important research in contemporary labor Economics. Binary structure theory emphasizes the influence of consumer and policy barriers to employment and reward, while classical economics stresses the supplier and labor. Wage and the collocation of human resource are not controlled by market but by management and system rule. If human capital can bring into play completely, that is to say, the returns to human capital is uniform, the income gap will lead more people to learn and acquire technique, and the difference of stock of human capital will eliminate, and the income gap between city and country will narrow. Contrarily, the dual labor market will block the narrowing badly. The economy development of our country needs knowledge and technique, so the exertion of active effect of human capital is necessary. Therefore, the research on human capital is meaningful on the base of dual labor market.The innovation of this paper lies in: it studies how the dual labor market reflects on the income gap widening; and the data is sufficient. The former literature focus on formal labor market mostly, but the informal labor market is neglected. The human capital compare research on the formal and informal labor market is few, not to say the research about the influence of returns to human capital and stock of human capital on the income gap. This paper focuses on the discussion that the influence of dual labor market on human capital by scientific analysis, and stresses the influence of consumer and system rule on employment and reward. That challenges the theory of human capital, and it is beneficial to the modification and perfection of the theory of human capital. Nowadays, the income gap between city and country is widening much more, so we think the research on the influence of human capital on the income gap is beneficial.