Research On The Impact Of Human Capital Investment And Stock Difference On Urban-Rural Income Gap

Although more than 30 years of reform and opening-up have made our country the second largest economy in the world,we have achieved full employment and basically solved the problem of food and clothing for the residents.But the consequent difference is the widening income gap between industries and regions,especially the income inequality between urban and rural residents.The inequality of urban and rural income is cured by the intergenerational transfer,which not only hinders the transformation of the two yuan economic structure to the one economy,but also intensifies the social contradictions such as the polarization between the rich and the poor.Human capital is an important factor affecting the income of residents.The difference in the stock of human capital and its growth explain a large number of observed wage structure differences and personal income distribution,so the accumulation of human capital can improve the distribution pattern of income.Therefore,in the current economic situation,it is a key factor to study the inequality of urban and rural residents' income,to seek the solution of the current China's income distribution and to investigate the heterogeneity of human capital.In view of this,this paper uses the method of literature research,theoretical analysis and empirical analysis to investigate the impact of the difference in investment,stock and structure of human capital on the urban-rural income inequality.First,this paper introduces the theory of human capital and the theory of income inequality,and preliminarily constructs the mechanism of the difference between human capital and income inequality.Secondly,this paper makes a descriptive statistical analysis on the differences of human capital and urban-rural income inequality in China by using the statistical data of our country,and combines the theoretical analysis.The relationship between the variables is assumed,and again,the dynamic relationship between the difference of human capital investment and the difference of stock and structure on the urban-rural income inequality is discussed through the quantile regression of the distributed lag model,and then to overcome the possible endogenous variables in the distribution lag model.The model is estimated by the weighted OLS method and the GMM estimation method,which explains the long-term equilibrium relationship between the human capital difference and the urban-rural income inequality,and then makes a further comparison and Analysis on the model estimation results of different educational stages and different regions;finally,it is explained and returned to the model.The main conclusions of this study are put forward,and accordingly targeted policy recommendations are put forward.Using the annual data of 35 major cities in 2004-2016 years,the Theil index and the absolute difference in income of urban and rural residents are used as indicators to reflect the of urban-rural income inequality,and a distribution lag model,which includes the difference of human capital investment,the difference of stock and structure,is constructed to examine the income of human capital to the urban and rural residents The effect of inequality.The results show that:(1)from the overall point of view,human capital is an important factor affecting the income of residents.The difference between urban and rural human capital,especially the financial gap between urban and rural education,is an important factor for the urban-rural income inequality.When the urban and rural education finance is significantly inclined to the city,the total income gap and the Tel index of urban and rural residents will increase,and when the number of students in rural areas is increasing,it can effectively alleviate the urban-rural income inequality.(2)from the perspective of human capital structure,human capital with higher education stage is the key factor to widening the income gap between urban and rural areas.The empirical results in the stage of education show that the degree of congestion in higher education has a significant positive correlation with urban-rural income inequality,and the income gap between urban and rural areas will expand when the number of higher education increases.(3)from the comparison of regional results,the urban-rural income inequality in the moderate economy development areas is the most prominent and expanding trend,and the increase of the human capital stock and the degree of local education can effectively alleviate the inequality of income.The main contributions of this paper are:(1)Overcome the regional limitations of the previous research on the factors affecting income inequality from a microscopic perspective.From the economic perspective of the 35 major cities in China,given a new interpretation of the impact of human capital differences on urban-rural residents'income inequality.(2)Based on regional economic development differences.Considering the heterogeneity of the impact of human capital on income inequality under different economic development conditions,the influence of human capital stock and structure difference and urban-rural income inequality in different educational stages is considered,and the current research on human capital and income inequality in China is further supplemented;(3)this paper reveals that accepting of homogeneity education plays an important role in reducing the urban-rural income inequality,the difference of urban-rural human capital stock in higher education is an important reason for the urban-rural income inequality,which provides a scientific and feasible method to realize economic structure monalization and narrow the gap between urban and rural areas,which is of great practical significance.