A Study On The Relationship Between Education And Income Gap In Urban And Rural Dualistic Structure

From The 18 th CPC National Congress, China has been constantly advancing human-centered new town, new urbanization has entered a period of rapid development of quality. By 2015, China’s urbanization rate has growed from 17.9% in 1978 to 56.1%, the urban resident population has been 770 million people. However, because of China’s vast territory, regional development is unbalanced, and exists urban-rural dual economic structure, for example, the urbanization rate of Guangdong Province reached 67.76 percent, the urbanization rate of Tibet Autonomous Region was only 22.75%. At the same time, the income gap of Chinese residents differentiation is very serious, from2003 to 2014, the Gini coefficient index reflects the income gap of view, the Gini coefficient of China was between 0.47 to 0.49, beyond the international warning line of 0.4. Moreover, we also see the increasing level of urbanization process is the town of hardware and software upgrade process, the industrial process is greatly accelerated the process of upgrading the industrial structure transformation, engaged in traditional inefficient agricultural labor to engage in modern and efficient industry the role of the service sector and knowledge-based industries.Education and knowledge are increasingly evident, which reflects the significant impact of education in the process of urbanization on income levels.Thus, in the background of differentiation of severe income disparity and the rapid development of urban reality, on the one hand, we’ll study the role of the relationship between urbanization and income gap between; on the other hand, we will also discuss education in the process of urbanization on income from to what kind of role. The first empirical analysis in this paper is based on 2000- 2014, China’s 31 provinces panel data’s PVAR estimation, which is to investigate the effect of the development of urbanization to income inequality. The second demonstration is from the different regions and different income groups, build Mincer earnings equation returns to education by quantile regression method to study the contribution of education to income.The empirical results show that: the development of urbanization will bring narrowing the income gap, increase income levels, and promote common prosperity. From education in the process of urbanization on the role of income, the rate of return to education for low-income groups in the high-income groups 4.3%. with increasing education, education yields higher and higher, educated yield higher education much higher than the unaffected group of higher education. for middle and higher income groups, urban education yields significantly higher than that in rural areas. there was no significant difference in the rate of return for low-income groups, urban and rural education; urbanization rate for medium and upper middle income group returns to education has a significant positive role in promoting. In summary, to promote the development of urbanization, improve the level of education of low-income groups and improve the educational level of rural residents, improve the popularity of urbanization and the rapid development of higher education, greater efficiency can be improved education promotion of income, but also conducive to promoting the new urbanization process in China. Thus, in the process of new urbanization development, governments at all levels should be through the development of education, guarantee equal education to narrow the income gap between residents.