Research On The Influence Of Human Capital On The Income Gap Between Urban And Rural Areas In China

The income distribution unfairness between urban and rural in China is showing a trend of deteriorating,together with the sustained and rapid development in its economy and the continued improvement living standards of its residents.The highly unbalanced income distribution between urban and rural residents has become one of the major impediments of building a harmonious society and a sustained rapid growth in economy.Many scholars have probed into causes of the generation and sustained broaden in urban-rural income gap.Some countermeasures are put forward as well.Most of these studies are to analyze the economic structure or social system,but a perspective of human capital theory is used in this dissertation.In reference to a large number of relevant literature,qualitative and quantitative analysis along with the theoretical and empirical analysis are used in this dissertation.Firstly,the impact mechanism of human capital factors and investment differences in urban-rural income distribution is illustrated."Matthew effects" occurred acompanied by such a distribution which would wide the urban-rural income gap further.Secondly,the overall income status and income sources of urban and rural residents are made a statistical analysis.Urban-rural gap in human capital stock and investment are disicussed in-depth from the aspect of training-education,health care and labor mobility.The empirical part,Eviews 6.0 statistical software is used to analyze the human capital elements' impaction on urban-rural income gap in China.Empirical analysis have shown that the presence of long-term stable equilibrium between the level of human capital and income gap in our country is a major cause of distribution unbalance in urban-rural income.The more investment inequalities in health,training and education of urban-rural residents,the larger the income gap would be.Scale expansion in labor mobility is not conducive to narrowing down the income gap between urban and rural areas which has some possible reasons.Countermeasures about the improvement of human capital and income gap between urban and rural areas are put forward accroding to the empirical result and current situation of China.