A Study On The Impact Of Education Gap On Income Gap Between Urban And Rural Areas In China

Since the adoption of reform and opening policies, our country’s economy keepgrowing, and so is the income of residents, there also come the various phenomena oneafter another, one of the most obviously striking at present is the widening income gapbetween the urban and rural residents. A lot of explanations had been given to thisproblem, such as urban-rural structure, the urban-biased policies etc, however with thesurrounding of knowledge-based economy and the promotion of technology and education,meanwhile, with China’s nine-year compulsory education system and the enlarging collegeenrollment, training and education play a very important role in human capital, such as theformation of human capital,as well as the economic development, how education gap willaffect the income distribution gap between urban and rural residents., and if the incomegap between urban and rural residents decrease as the increase of the schooling age etc, allof these are worthy of concern. This article will focus on the empirical research about theanalyze of the impact of the education gap on income distribution gap in order to betterdeepen the understanding of the income distribution gap and the education gap.This paper is in terms of human capital theory, through the labor market transmissionmechanism. We do an empirical test on the relationship between the income distributiongap and education gap, using the panel data of year2001—2009through China’s30provinces in this paper.The results of studies were as follows: At present in China, the education gap has adominant effect on the income distribution gap，while the expansion of education do nothave a significant effect on the income distribution gap.Finally, according to the empirical results of this article, we draw the mainconclusions and recommendations, also on the basis of the preliminary study of thispaper，we draw the future outlook where efforts could be done.