Measure And Influence Factors Analysis On Urban-rural Income Gap In Zhejiang Province

The economy has achieved rapid development since the implementation ofChina’s socialist market economy with Chinese characteristics. However, the highlightcontradictions begin to develop as the great achievements achieved. There are someproblems in income distribution with the industrial structure changing and thetransformation of the economic structure, for example, the income gap between urbanand rural, rich-poor divide, unemployment and so on. The unbalanced development,uncoordinated and unsustainable problem is very prominent. It makes bad effect forbuilding a socialist harmonious society. According to statistics, Gini coefficients are0.474in2012and0.473in2013. Therefore，it proposes to promote the reform ofincome distribution further at the Third Plenary Session of the Party’s eighteen,increasing low incomes, expanding the proportion of middle-income people.Gradually formed the olive’s pattern of income distribution with mentioning low，controlled high and extending mean.Zhejian province’s income distribution is in a tough time. It should take the leadin solving the problem of income distribution to narrow the income gap, becoming amodel for other provinces. This paper mainly measures the income gap and analysesthe influence factors of urban and rural residents in Zhejiang Province, in order toreduce the income gap. Firstly, it mainly measures the income gap between urban andrural residents in Zhejiang Province. It calculates the town interior Gini coefficientand the rural interior Gini coefficient in Zhejiang Province from1995to2012. Theresults show that the income gap within rural areas is greater than the internal towns.The income gap in urban appeared inflection point in2008, and the gap begin toshrink. But the income gap within rural areas has shown a trend of expansion. Theinflection point is not to come. It also measures the Theil entropy index and FGTindex between urban and rural residents. And found that the contribution to theincome gap is gradually increased among urban residents. The contribution of theincome gap between rural residents is declining, and the income gap between urbanand rural areas has gradually become the main reason. Secondly, it analyses the influence factors about urban and rural income gap. This part uses the Theil entropyindex as a measure of the income gap between urban and rural residents indicators,Urban-rural dual structure, industry structure change, depending on foreign trade, andeducation as the dependent variable; On this basis, it builds a state-space model of thetime varying parameter model, using Kalman filter’s iterative algorithm to estimate itstime-varying parameter map. In these four factors, the dual contrast coefficient andthe proportion of secondary industry’s increasing can reduce the income gap betweenurban and rural areas. The expanding of foreign trade and education differences willwiden the income gap between urban and rural areas.