How Does Development Of Urbanization Affect Income Gap Between Urban And Rural China?

With the development of urbanization in our country,a large number of rural surplus labor pour into the city.On the one hand,the wage income is always higher than the income from the land management,on the other hand,the equilibrium of the rural labor market is broken.All kinds of resource endowment and wage rate of rural residents will change.Under this background,this paper focuses on how the development of urbanization affects the income gap between urban and rural areas.First of all,on the basis of the literature review at home and abroad,based on the development of reform and opening up in China,this paper carries out research work on the current situation of urbanization and income level of residents in China.The results show that the level of urbanization in China has increased significantly,and the urbanization rate has risen from 18.96%in 1979 to 57.35%in 2016,while the urban-rural income gap has fluctuated with the fluctuation of"narrowing-expanding-narrowing-expanding-narrowing",and there are certain regional differences.That is,the urbanization in the eastern region develops rapidly and the income gap between urban and rural areas is small,while the urbanization in the western region develops slowly,and the urban and rural areas receive more income.The gap is large.Secondly,based on the two economic structure theory,to quantify the model as a research tool to explore the relationship between the urbanization development level and income gap,and influence on the latter role in the results on the basis of the former is decomposed into three different effects,and then put forward the hypothesis of this paper,which accelerate the process of urbanization will produce a significant inverted "U" type effect on the income gap between urban and rural areas,with the accelerated development of urbanization,the urban-rural income gap will be enlarged at first,changes after narrowing.Thirdly,the sample is provincial panel statistical data,and the time span is 1984-2016,and the dynamic panel model is constructed to analyze and verify the inverted "U" type hypothesis proposed in the theoretical part.The empirical results show that,With the continuous acceleration of urbanization,the overall impact of urbanization on the urban-rural income gap shows some more typical "U"characteristics.Specifically,while the level of urbanization is improving,the urban-rural income gap has expanded first.The law of gradual and small change after exceeding a certain critical value;use of intermediary effect model to open the channel of urban-rural income gap affected by urbanization.The empirical analysis demonstrates that the level of urbanization has a specific impact on the income gap between urban and rural areas through a special intermediary effect.The influence of the intermediary effect is about 84.14.of which,the employment effect accounted for 44.62%of the total effect,the human capital effect was 1.98%,the rural economic structure upgrade accounted for 37.54%of the total effect,which indicated that the employment effect and the rural economic structure upgrading effect on the city in the process of urbanization development.Rural income gap has the greatest impact.Eventually,based on the findings of the paper,this,we combine the actual situation of our country,from breaking the dual structure of urban and rural areas,changing the policy of urban bias,promoting the increase of farmers' income.