The Effect Of Human Capital On The City-Country Income

With the development of the economy, people in our country have a higher living level, nevertheless, the income gap between the urban and rural people become larger, and there are so many factors.The thesis has researched the human capital and per income of the urban and rural of each district in 1990 and 2000. Based on the fact of the gap of city-country income, the thesis has analyzed the reason of the bigger gap of city-country income from such factors as policy, productivity, urbanization and human capital, etc. According to the theory of the relation between human capital and income, that is, the more the accumulation of human capital is, the more the income is, the relation between human capital and the income gap has been explained fully. Using the method of the section and time analysis, and the method of demonstration and regression analysis, we found that the income has increased with the increase of the human capital. The factor of human capital has exerted more influence to the income, but less to the gap of city-country income, which is in close relation to the constitution of China. So the thesis put forward the measure and route to decrease the gap of income, and pointed out that the increase of the investment of human capital in the rural is the most effective measure to decrease the income gap.