The Evolution And Genesis Of China’s Urban And Rural Residents’ Income Gap

The income gap between urban and rural residents has been a focus of the society. It is an inevitable problem in the process of economic development, relating to the vital interests of the people and mapping the structure and status of the income distribution. However, according to its self-regulating capacity and the current situation of the income of urban and rural residents, the income of urban residents is significantly higher than the level of income of rural residents. As time passes, the income gap between urban and rural residents will expand continually and even achieve an unstoppable state. If we can find out the various factors that affect the widening of the income gap between urban and rural, we can formulate a series of related policies on the basis of science and promote the healthy development of the relationship between urban and rural. If you can identify the various factors that affect the widening of the income gap between urban and rural, can be a more reasonable and accurate for the government to develop a series of related policies to provide a scientific basis to better promote the healthy development of the relations between urban and rural.The characteristic of Non-parametric estimation does not require any parameter model assumptions, and use the required samples to estimate the probability density function directly. The form of the regression function can be arbitrary without any constraints and the distribution of the explanatory variable and the explained variable has few restrictions.Thus Non-parametric estimation has a greater adaptability, and its aim is to relax the restriction of the form of the regression function.This paper quantitatively estimates the present situation and process of evolution of the China’s urban and rural income gap by using traditional measure and Non-parameter kernel density estimation method, based on the years of micro survey data of the national income. Then, by the integrated use of Cointegration test, Granger causality test, multiple linear regression,the paper analyzes historical data from1978to2010and reveals the relationship between the status and influence factors of urban and rural income gap of our country. According to measuring results, it proposes corresponding countermeasures and suggestions on opt mizing the income gap between urban and rural residents.This study conclusion:under the condition of ensuring the coordinated development of industry and agriculture, we should accelerate economic growth, increase rural workers’ wages, increase investment in rural areas, promote the construction of new urbanization and gradually improve rural security system. According from the present situation in our country, the focus of future policy should strive to create a fair competitive environment, the distributive environment and poverty alleviation environment, which is the first premise of easing and narrowing the income gap between urban and rural areas.