An Empirical Analysis Of Income Inequality Between Urban And Rural In Chong Qing

In this paper, Theil index is used to study the income inequality between urban and rural in Chongqing, at the same time, this paper is divided into seven parts. The first part is the preface. This part mainly reviews the reasons why in Chongqing urban and rural dual structure is obvious and explains research background and research purposes. Meanwhile, the foreword summarizes the literature of income inequality between urban and rural areas in Chongqing. The second part is Theil index and its decomposition related theory. The conclusion shows that along with the urbanization process, the income inequality between rural and urban areas will rise after the first drop (when urbanization rate is greater than its maximum value, the income gap between urban and rural areas begins to reduce. on the contrary, the income gap between urban and rural areas will increase), which is the same with the Lewis’ hypothesis. And with the increase of the income of urban and rural residents, the urban and rural income inequality is widening.The third part is the analysis of urbanization in Chongqing. At2008Chongqing has exceeded the city’s urbanization rate grew by an average of1.7%a year and the development goal of urbanization rate reached50%by2010.The fourth part is urban and rural income gap analysis in Chongqing. Main conclusions show that both the rural overall growth rate and average annual growth rate is faster than the countryside. The income gap between urban and rural areas in Chongqing’s index falls after rising first, and peaks in2006.In2003, Chongqing’s urbanization rate is greater than its maximum, so the urbanization will further narrow the income gap between urban and rural areas. The transfer income that urban residents get is far greater than rural, and difference of buy-backs is rapidly rising.The fifth part is the Chongqing’s rural and urban analysis of the income gap. Rural residents’ income comes mainly from salary income and family business income, which accounts for about90%of net income.While, property income and transfer income accounts for only about10%. Urban residents’ income comes mainly from salary income and transfer income. Two types of income accounts for around90%, but the proportion of two types of income proportion of revenues in reducing year by year.The sixth part is the overall income gap analysis of Chongqing. The index shows a trend of inverted "U", and the maximum overall income gap in Chongqing is2006. And the income gap between urban and rural and the urban internal income gap in Chongqing has always been the main reason of income gap in Chongqing, which accounts for about90%.The seventh part is conclusion and policy Suggestions. This paper puts forward the promotion of urbanization rate and the policy of narrowing the income gap between urban and rural areas.