Influence Of The Education On Income Gap Between Urban And Rural Areas In China

Since the 1980 s, the economy has been growing fast and the income level of resident has been greatly improved. But the fruitful results of economic development are not evenly distributed. The gap of income is really serious. Although the governments have carried out some policies aiming at reducing the income gap, these policies don’t turn trend of the expanding income gap fundamentally.In a technology-thrust economy, the differences of human capital level lead to the differences of growth momentum between urban and rural, eventually cause the income gap. Because the carrier of the human capital is person(or employee). Education is important form accumulating human capital. Based on this,we can think that: the gap of education t represents the gap of human capital to some extent. So this paper tries to analysis the education influences on income gap between urban and rural in China from the perspective of education and based on relevant research, by using these theories about income distribution, income gap theory and related theory of education leading to the income gap.Theoretical analysis concludes that education extension is helpful to improve the level of residents’ income distribution. In the lower stage of education development,education expansion widens income gap; but in the higher stage, education expansion has inhibitory effect. There are three ways that the education gap widens income gap: urban and rural education inequality causes the difference of economic growth pattern; the education differences also causes obstacles to rural labor force into the city; education inequality widens income gap. And in our country, the fact is that public education funding has urban bias. There is a big inequality between urban and rural education resources.Respectively on the level of education expansion and income of urban and rural rough simple regression, we find that: both rural and urban, the relationship between income levels and education expansion are positively correlated; the return on education to the urban residents is higher than rural residents’, that increases the income differences. After the empirical analysis, I find that: the income gap and the education gap have a long-term stable relationship in China. Education gap is Granger reason of income gap. After aboveanalysis, the paper propose the corresponding advice: to continue deepening the system reform and establish a fair education and employment system; The authorities should increase spending in education, especially the basic education to rural; Optimize the configuration of teachers resources; Other Suggestions.