| Income distribution is not only a major theoretical question in the study of economics, but also the question people widely focus on, for the situation of people's income distribution is directly related to the economic interests of all members in society and the survival consolidation of the socialist economic system. Three decades of reform and opening up, China's economic development has made remarkable achievements. Many changes have taken place to the way and pattern of income distribution. The expanded gap between inter-urban and rural areas, between regions, between industries, as well as the towns and rural areas have a great impact on every aspect of society and economy in china. To some extent, it affected the construction of socialist harmonious society.Yanan, the Chinese and the Chinese revolutionary Land, has rapidly developed and made great economic achievements since the reform and opening up and the policy to develop the western region is executed. With the implementation of returning farmland to forest and the exploitation of oil resources, the level of residents' income is rapidly rising. Meanwhile, the question of income distribution in different fields becomes more apparent: between the urban and rural areas, between different countries, between different sectors, between enterprise with different forms. Therefore, the gap between people's income is enlarged. So how to deal with this problem is related to the development and stability of Yan'an' economy and society. This is why I chose this topic.In this paper, it adopts a method of integrating theory with practice. By analyzing the income gap of residents in Yan'an City, the author analyzes and studies it from multiple perspectives. The income gap among the current residents in Yan'an City is a comprehensive factor in the problem of income distribution of both natural and historical factors. There are also other reasons including the imperfect system, institutional restructuring, policy execution, the defects of market mechanism and management, of course, also the source of the income of urban and rural residents, the difference among their own qualities and so on. Therefore, we must face up to the reality and importance of people's income gap which may lead to social harm. The use of resources and the history of advantages of Yan'an helps to actualize development by leaps and bounds, tamp the rational distribution of solid material foundation, improve the system, adjust policies, bring into play of the main body and central role of governmental regulation and control to the income gap, perfect market system; strengthen the rule of law and create a fair and reasonable income distribution environment, allocate educational resources rationally, unify urban and rural education policy; improve the quality of residents themselves, develop enterprise of charity, play a complementary role of the third force to adjust income distribution. Multi-pronged approach helps to narrow the income gap to avoid polarization, realize the coordinated development of regional economic of Yan'an, achieve common prosperity, and build a harmonious Yan'an. |