Based On The FGT Index Analysis Of China’s Urban-rural Income Gap And Its Influencing Factors

Since China’s reform and opening up,sustained economic rapid growth in China, but the income gap continues to expand, the internal income gap between urban and rural areas more prominent. Lorenz curve is one of the classical theory of the income gap,it more fully consider the population structure and income structure of the relationship. Among them, General Quadratic(GQ)Lorenz curve model and Beta(B)Lorenz curve model Considering to the differentiation of poverty line set and Tectonic measure of poverty FGT index, are widely used in the world bank. According to the existing statistical data, paper will be urban and rural residents income is divided into seven and five layer group respectively, use the POVCAL software developed by the world bank, respectively for the urban and rural areas of China internal FGT between income groups each index is calculated, results show that the rural FGT index rose from0.03in1990to0.0713in2011, urban FGT index rose from0.0126in1990to0.0413in2011, all roughly, fluctuated in a rising trend.Further, the paper based on the dual economy, welfare economics theory, Selected by education level, foreign trade dependency, per capita economic growth rate, the transfer income, urbanization rate and the proportion of agricultural expenditure proportion of six major influence internal variable of the income gap between urban and rural areas, through stepwise regression method, results found by education level, transfer income proportion, the speed of economic growth and foreign trade dependency significant effects on the income gap between urban residents, by education level, transfer income proportion and the proportion of agricultural financial subsidies significantly impact on the income gap between rural residents. Finally, this article from two aspects:the level of education and social security policy Suggestions on the income gap in China are put forward.