| After the reform and openess of China, the economy in our country is developing significantly,the salary level of the urban and rural residents is growing very fast as well. However, we cannot deny that the wage gap between urban and rural residents is continuously increasing,which becomes a serious social issue. The significant gap does not just imply the loss of economic efficency, but also does not good for social stability, as a result, the sustainable development of social economy will be influenced. That is why we have to analysis the reasons for that and provice the solutions.In all the factors that affect the gap of income distribution, human capital seems to be one of the most important one. As the most important aspect for human capital investment, the distribution of education is related to the distribution of income. In addition, the fast urbanization has a significant effect on the gap of income distribution. As a result, the equal education opportunity and the level of urbanization has received significant attentions from the society, the analysis of which has very important theoritical and practical meanings. This essay is trying to analysis how equal education opportunity and urbanization can decrease the gap of income between rural and urban area.The function of this essay include:By reconsidering the inequilty of education, the change of income distribution gap, and the urbanization, this essay will start from the analysis of human capital and income distribution, and furthermore it will consider this within China’s national conditions, in which way, it will analysis labor market factors, the influence of government education policy which related to education allocation and income distribution, in order to clarify the effects of education inequality and income distribution gap. the theoretical analysis explains the relationship between inequal education, uneven development of urbanization and income distribution gap, this helps to establish the theoretical foundation for the empirical study. Further, this essay will provide empirical analysis of the relationship of inequality in education, the development of urbanization and income distribution gap. This essay will use education of Gene coefficient and Tell index system to measure the level of education inequality and income inequality.Using Chinese provincial panel data during2000-2010and panel estimation of varying coefficient model with fixed effects. The results of the study show, first of all, the decrease of inequality in education contribute to narrowing the income distribution gap in the long-term. Secondly, the long term education expansion has reduced to income distribution gap significantly. This shows that, continue to promote the expansion of education is one of the important means to control the income distribution gap, but in the process, we should pay attention to the logical and rationality of education. Finally, china’s urbanization can be helpful to reduce the income distribution gap.Finally, according to the conclusions that are given from this paper, China’s education finance system, narrowing the gap between urban and rural education, speeding up the urbanization process can contribute to establish a benign interaction mechanism. |
