China Income Gap Between Urban And Rural Residents And The Impact Of Investment In Human Capital

Since the reform and opening up, our country has made remarkable achievements on economic and social development. The living standards of residents have markedly improved, because they have gained benefits brought by economic and social rapidly development since reform and opening up. Our economic and social developments have been fairly well-off. At the same time, along with our country’s economic and social developing continuously, the pattern of income distribution in China has undergone changes, and egalitarianism has become a thing of the past, the income gap between urban and rural residents of China is also gradually expanding. The expansion of the urban-rural income gap not only will have a negative impact on economic growth and consumption investment and other economic areas, but also cause difficulties and deficiencies on investment in human capital of urban-rural, such as education health investment and so on, then resulting in a long-term backward of development in human capital, and causing the further expansion of the urban-rural income gap, forming "Mattew Effect" on income distribution and capital investment. The problem of urban-rural income gap has become an urgent problem of social and economic. And it has caused the government and the people’s high attention.The contents of this article can be composed of five parts. The first part described the background and significance of this study and pointed the major problems. At the same time, this article analysis the research status at home and abroad, establishing the necessary theoretical basis of this paper. The second and third parts of this paper qualitatively described the status quo of China’s urban-rural income gap and human capital gap. The fourth part analyzed qualitatively and empirically the relations between urban-rural income gaps and human capital investment. The fifth part projected some advice to narrow the gap between urban and rural human capital investment.At present, domestic and international research on this issue is mainly concentrated on the human capital investment’s effect on income distribution. Although there are many differences in research direction and concrete results, they basically came to a common conclusion:investment in human capital has a considerable impact on income distribution. The perspective of this paper will focus on the impact of the distribution of income gap between urban and rural residents in our country. With the use of the statistical date, it pays particular concern to the status of the income distribution gap between urban and rural human capital investment. At the same time, this paper analyzes the reasons and effects for the expansion of the urban-rural income distribution gap. And mainly analyzes that the urban-rural income distribution has an impact on the education of urban-rural residents, health and labor migration. And this paper will make use of empirical analysis methods to obtain economic analysis.