Urban-rural Income Gap Measure And Empirical Analysis

The reforming and opening-up policy carried out since 1978 has greatly changed economic development of China. Along with the economic growth, the income of the residents of urban and rural areas increases rapidly, but the gap between them is becoming bigger and bigger. The increase of farmer's income lingers at a low level, and the increasing income gap between urban residents and residents in the rural areas has become one focus of Chinese economy development. Coordinated development of urban and rural areas, speeding up the development of agriculture has become the basic requirement of construct the harmonious society. Based on this kind of background, this thesis has been further investigated on the topic of income gaps of Chinese urban and rural residents, the research contents are mainly divided into the following part:This thesis has introduced the meaning of theory and practice of the selected title at first. The economics theoretical foundation is the theory about economic development and income distribution in the development economics. Lewis' Two-sector Economy Growth Theory and Kuznets "Inverted-U" Curve is the most representative theory.Chapter two has reviewed the research situation of income gap problems of Chinese urban and rural residents. As the Important component of income allocation studies, the research of urban and rural residents'income gap concentrate on the estimate of the income gap and the cause of the income gap. Gini coefficient is a widely used index that estimate income gap between Chinese urban and rural residents. System factor, uneven development strategies are considered to be the main reason form income gaps between Chinese urban and rural residents.Chapter three has carried on quantitative analysis to income gap between Chinese urban and rural residents, use Theil index to calculate income gap between urban and rural residents. The basic conclusion is as follows, except the beginning of eighties and the middle period of the nineties, whole income gaps of urban and rural residents have been on the rise all the time. At the beginning of the eighties, the household contract responsibility system has notably improved the productivity and the income of rural residents. In the middle periods of nineties, Theil index fall again due to the high price of agricultural prouct. Income gap between urban and rural residents expanded after the overproduction of main agricultural product after 1997. The changes of system factor and agricultural product price are directly related to the income gaps between urban and rural residents.Chapter 4 analysis the reason of income gap between Chinese urban and rural residents: agricultural factor and system factor. Agricultural factor: limited land scale, low level of technology and high production restrict the further growth of the agricultural product. In addition because the low Industrial Level of Agriculture and the government's controls of the price of agricultural products make the elasticity demand of agricultural products change limitedly. System factor: Though the government has taken a lot of significance measurement to improve the situation of the rural residents in recent years, such as cancelling agricultural tax, medical system reform, etc., but the growth of the rural resident's income is still limited by uneven development strategy, including each aspect of the economic and social life.Chapter five have discussed the impact on China's social economic development of income gap between urban and rural residents expanded day by day. Big income gap between urban and rural residents are not only influence consume, will also influence investment. Reduce the income gap between rural and urban dividends helps to expand domestic demand; Raise the rural resident's income promote economy to develop sustainably in a healthy way; Raise the rural resident's income helps China to absorb the foreign capitals; It also helps to sustained the stability of the society.Finally, the paper put forwards policy suggestions to balance the income gap between urban and rural residents. It includes realize agricultural industrialization, reform the system of the household register, and promote the rural transfer of surplus labor. Improve the finance condition of the rural area, strengthen the public product investment. Improve the agriculture subsidy and agricultural insurance system. As the guardian of public interests, government needs to improve the social security system of the countryside in order to give each citizen a relatively equal competition chance.