Research On Impact Of Service Industry Agglomeration On Urban-rural Income Gap

In recent years,modern service agglomeration areas in cities have sprung up,reflecting the strong agglomeration effect of the service industry.Under the agglomeration of rural talents,capital and other factors continuing to flow into the city,urban and rural economic landscape is in large difference from every aspect.so this paper puts forward the view whether the service industry agglomeration has an impact on the urban-rural income gap in China.Combined with the existing literature,this paper theoretically analyzes the mechanism of service agglomeration on the urban-rural income gap.Then,taking advantage of the panel data of 31 provinces from 2003 to 2016,it empirically tests the effect of service industry agglomeration,three natures-----productiveness,consumption,public-service agglomeration on the income gap between urban and rural areas.Then by using the CHIP micro-survey data,it merges into the service industry agglomeration index based on the Mincer wage equation to establish a model to compare the differences of the impact of service industry agglomeration on urban and rural residents' income.Through the above research,this paper draws the following conclusions:(1)At present,the service industry in China is in the stage of accelerating agglomeration,which has greatly improved the income of urban residents,while it limits the increase of the income of farmers in this process.Service industry agglomeration is an important reason for the widening of urban-rural income gap.(2)There are regional differences in the influence of service agglomeration on the income gap between urban and rural residents.Service agglomeration in eastern,central and western regions has significantly widened the urban-rural income gap,but it is not significant in the northeast regions.(3)In the productiveness,consumption and service industries,the productive services with high industry added value and high industry threshold widen the urban-rural income gap,the consumption service industry cater for the consumer market directly,and its agglomeration is consistent with the relative development gap between urban and rural economy,so its agglomeration make the urban-rural income gap wider.While the concentration of public services is conducive to narrowing the urbanrural income gap,because of its inclusive and public welfare.(4)The micro level data further confirm the conclusion of the service industry gathering to widen the income gap between urban and rural areas.The agglomeration of service industry promotes the economic efficiency and turns into the increase of labor income,both urban and rural residents' income increases.While urban residents benefit more,the increase in income is higher than that of rural residents.