Regional Comparative Study On The Impact Of Human Capital To The Urban-rural Gap

Since China’s reform, China’s economic development is rapid and countries become more and more rich. But there are differences in the accumulation of wealth in different regions; the east is the main area of wealth accumulation. Other underdeveloped regions didn’t get the corresponding growth of wealth. Wide income gap of urban-rural areas and different regions affected the social fair. It is harmful to the harmonious development of the continued growth of the economy in China. Many scholars from different areas of study of the causes of the income gap between urban and rural areas to expand, and put forward some solving countermeasures. But most of these studies from the level of economic system and the system, this article mainly from the perspective of family investment, analysis of human capital for urban-rural income gap between the eastern, central and western regions.Based on the related researches at home and abroad and combined with the theory of human capital and income distribution, this article analyses the mechanism of action of human capital on the urban-rural income gap. The family human capital index measured by the per capita expenditure on education, health care, and transfer spending. The income gap between urban and rural measured by the Theil index.And according to these indicators to analyze the current situation of the two factors and evaluation, and then using a panel model study the gap between human capital investment to the east, middle and west area of the influence of urban-rural income gap.The empirical analysis concludes:The eastern, central and western areas of urban-rural human capital investment gap and urban-rural income gap closely linked. Moreover, the eastern, central and western of urban-rural income gap is positively correlated to the per capita expenditure on education, health care, and transfer spending. The per capita expenditure on education of the influence of the urban-rural income gap is the largest. And in the comparison of the eastern, central and western areas, the correlation coefficient of the western is larger. The correlation coefficient of the per capita expenditure on health care is placed second. And in the comparison of the eastern, central and western areas, the correlation coefficient of the central is larger. The last is the per capita expenditure on transfer spending.Finally, according to the theoretical analysis and empirical results, this paper puts forward to some countermeasures and suggestions to reduce the eastern, central and western urban-rural income gap.