A Study On Narrowing The Income Gap Between Urban And Rural Residents In Jiangsu Province

Since the reform and opening up, China’s economy has maintained a high growth rate, increased national wealth and living standards continued to improve. But we must realize that, with the development of economic, the income gap between urban and rural residents is getting bigger. Excessive income gap is challenging growth sustainability, the next development goals and people’s livelihood improving. As a powerful economy province in eastern, the total economy and the economic growth rate of Jiangsu have been in the forefront of the country and Jiangsu is also one of the smaller urban-rural income gap provinces. To analyze Jiangsu income gap between urban and rural residents, on the one hand, can play a good guide and model to solve the problem of urban-rural residents’ income for other areas; on the other hand, is also the necessary requirement of urban and rural development in Jiangsu and China, and preventing the urban- rural income gap in Jiangsu. At the same time, due to historical reasons and differences in resource endowments and other reasons, Jiangsu formed a southern, central and northern regional differentiation, using the appropriate model to study the issue has important policy implications for various regions and the whole country. Currently there is much research literature that is about the income gap between urban and rural residents from the perspective of overall income and the whole country. But there is less literature to study how to reduce the income gap between urban and rural residents from the perspective of a source of income in Jiangsu. Therefore, there is certain practical significance to study how to narrow the income gap between urban and rural residents of Jiangsu.Based on the theory of income distribution combined with existing research literature, this paper using statistics from the perspective of the income structure analyses the changing path of income gap between urban and rural residents in Jiangsu, so as to arrive in Jiangsu specific sources of income disparity constitutes and the actual situation. Subsequently, we study on the formation and expansion of causes and factors of income gap between urban and rural residents in Jiangsu through theoretic analysis. And make use of panel data model to get the strength and direction of the selected variables on the income gap between urban and rural residents in Jiangsu. On this basis, this paper explores specific ideas to narrow the income gap between urban and rural residents in Jiangsu. The main viewpoints of this paper are as follows:1. On the whole, in recent years, the income gap between urban and rural residents in Jiangsu growing in volatility. But on the one hand, it isn’t growing by geometric progression; On the other hand, different sources of income disparity are different and in unbalanced state.2. From the impact of influencing factors of income gap between urban and rural residents, agricultural comparative labor productivity and human capital shrink to varying degrees in Jiangsu urban-rural income gap.The dual structure coefficient and the urbanization level will widen the income gap between urban and rural residents in Jiangsu. Financial support for agriculture has a negative effect in narrowing the income gap between urban and rural residents in Jiangsu, but it is not significant.Finally, we give policy recommendations about how to narrow income gap between urban and rural residents in Jiangsu.