Industrial Structure Upgrading,Human Capital And Income Gap Between Urban And Rural Residents

In the past 40 years of reform and opening up,China's economic development has made great achievements.The income and living standards of urban and rural residents have been greatly improved,but the income gap between urban and rural residents has been expanding.How to effectively narrow the income gap between urban and rural residents has become a topic of common concern to scholars at home and abroad.At the 19 th National Congress of the Communist Party of China,President Xi Jinping also emphasized that the government should improve the quality of employment and the level of people's income,and fulfill the government's adjustment function of redistributing,and narrow the income distribution gap.Most of the existing researches separately study the effects of industrial structure upgrading and human capital on the urban-rural income gap.The interaction between the two is not included in the analysis,and the impact of the transformation of human capital from the low-level to the high-grade on the urban-rural income gap is not considered.This paper integrates industrial structure upgrading and human capital into an analysis system,and considers the interaction between industrial structure upgrading and human capital,and portrays human capital from the two aspects of human capital overall level and structure upgrading.This paper analyzes the mechanism of industrial structure upgrading,human capital and the interaction between the two on urban-rural income gap based on the existing researches and the classic theory of industrial structure upgrading,human capital and urban-rural income gap and puts forward the research hypothesis.And then this paper examines the proposed research hypotheses using panel data of 31 provinces and cities in China from 2005 to 2016 and individual fixed-effect models.The empirical results support for null hypothesis.Firstly,the industrial structure upgrading will narrow the income gap between urban and rural residents;Secondly,the improvement of human capital level and human capital structure upgrading can narrow the urban-rural income gap;Thirdly,the interaction between the industrial structure upgrading and the human capital can narrow the urban-rural income gap.At the same time,it shows that the urbanization has a “U-shaped” impact on the urban-rural income gap,and the economic development can narrow the urban-rural income gap,and the increase of R&D investment and real estate price will widen the urban-rural income gap.Finally,this paper puts forward relevant policy recommendations according to the empirical results and the actual situation.Firstly,improve the human capital level and promote human capital structure upgrading;Secondly,promote industrial structure upgrading further based on human capital situation;Thirdly,promote human capital flowing and positive interaction with industrial structure.