The Research Of Income Gaps Between Rural And Urban In China

Since the reform and opening up, the scale of China’s labor mobility is in a state of constant increase, showing the phenomenon of the flow from country to the city. Based on the classical theory of development economics and many scholars, rural-urban labor mobility will narrow the income gap between urban and rural areas. But the reality of our country is that accompanied by the increasing of the scale of the labor flow, Urban and rural income gap in the whole has a growing trend. Facing this paradox, this paper studies the problem of urban-rural income gap in China based on the perspective of labor flow. From the historical status, influence mechanism, empirical analysis and other aspects, urban and rural labor mobility can affect the income gap between urban and rural areas affected by the three effects of enterprise agglomeration. And according to the conclusion, the corresponding policy recommendations are put forward. This conclusion and policy recommendations can make a more reasonable and effective explanation to the relationship between the urban-rural income gap and labor flow in China.This paper is divided into six chapters.The first chapter is the introduction, which summarizes the problems and ideas of this research.The research background, significance, research framework and content, literature review and the main contributions and shortcomings of this paper are introduced. The second chapter is the theoretical analysis of the relationship between labor mobility and urban rural income gap. This paper expounds the relevant theories of the economics, such as the theory of push pull, the two economic theory, the new classical economics theory, and the theory of Kuznets’s U and use these theories to analyze the problem of this paper. The third chapter describes the historical evolution and main features of the urban-rural income gap and labor flow in China. The fourth chapter analyzes the mechanism of the interaction between the labor flow in China and the income gap between urban and rural areas. The fifth chapter is the empirical analysis, using the fixed effect model to demonstrate the relationship between the labor flow and the income gap between urban and rural areas.The sixth chapter is the basic conclusions and policy recommendations of this article, in order to narrow the gap between urban and rural income to provide a reasonable policy recommendations.