The Theoretical And Empirical Analysis Of Urban Bias And Chinese Urban And Rural Income Gap

Since reform and opening, with the rapid growth in our economy, the income gap between urban and rural areas also showed a trend of fluctuation in expansion.The income gap between urban and rural areas, not only influences the improving of their living standards, restricting the development of agriculture, but also threats the stability of the entire socio-economic and health development,So how to narrow the income gap has become a hot issue in the community to pay close attention.In response to this phenomenon, this paper will discuss the change of urban-rural income gap based on the urban bias applied to urban and rural elements of the configuration from the urban bias of the institutional factors start.Firstly, the paper define the connotation of urban bias and analyze the urban bias through labor, a net outflow of funds in rural areas, urban and rural human capital accumulation on the income gap of the active route, and put forward the corresponding hypothesis.Based on this, the paper analysis the status quo of the income gap between urban and rural areas of our country, urban bias configuration under China's labor situation, the net outflow of funds in rural, and human capital investment one by one,and then select 1978-2013 years of national time series data, set up econometric model to do empirical analysis and testing. The econometric model test results show that urban bias does have a significant impact on the income gap by acting on the urban and rural elements of the configuration.There is a significant bad effect on the income gap between two areas by Improving the level of urbanization.Improving the level of urbanization is conducive to narrowing the income gap between two areas.there is a certain positive effect on the income gap with the net outflow of funds in rural areas.the greater the net outflow of funds in rural areas, the greater the income gap.there is a positive effect on the income gap with the differences in urban and rural human capital investment, the greater the difference between urban and rural per capita human capital investment, the greater the income gap between twol areas.Depending on the test results of measurement,this paper presents four suggestions for narrowing the income gap between urban and rural:firstly, accelerating the reform of the household registration system and establishing social security system of urban and rural;secondly, increasing the fiscal and financial support for agriculture and optimizing the structure of agriculture; thirdly, paying attention to the qualified people and improving the level of rural human capital accumulation;fourth, accelerating the pace of development of agricultural industrialization.