Research On The Relationship Between The Generalized Human Capital&Its Spillover And The Urban-rural Income Gap

The income gap between urban and rural residents is one of the most important issues that influence the economic development and social stability in China. With the further expansion of urban-rural income gap in recent years, this issue has aroused widespread concern of domestic and foreign scholars once again. Corresponded to the urban-rural income gap, some variables and factors related to human capital also exist of this or that gap between urban and rural areas. Its formation and expansion are closely linked with the income gap between urban and rural areas. This paper suggest that:the accumulation gap of human capital between urban and rural areas and its unidirectional spillover is the deep-seated factor of urban-rural income gap in China. Therefore, first of all,we need to reduce the gap of variables associated with human capital in order to narrow the income gap between urban and rural areas.This paper firstly gives a literature analysis to the factors of China’s urban-rural income gap. Based on some research draws at home and abroad of the urban-rural income gap, the article mainly analyze the gradually expanding reasons of the urban-rural income gap through the accumulation gap of human capital and its unidirectional spillover between urban and rural areas in China. Then, we use the methods of statistical analysis, theoretical analysis and empirical analysis to study the role of human capital accumulation and its unidirectional spillover in the cause of China’s urban-rural income gap by collecting relevant data. The paper further refine the gap of human capital between urban and rural areas as the urban-rural differences in education funding and health care spending, and using the ratio of rural migrant labor accounted for the rural labor force to measure the spillover of human capital.Theoretical and empirical analysis of this paper all indicate that the human capital accumulation and its spillover in a large scale between urban and rural areas are the deep-seated factor of the urban-rural income gap. The education as an investment way of the human capital, the inequality between urban and rural areas will directly lead to differences in urban and rural human capital accumulation. At the same time, the differences between health care spending is one of the main cause of urban and rural labor force of health disparities, which have led to the differences in the human accumulation between urban and rural areas. The human capital accumulation differences between urban and rural areas is the reason for the income gap between urban and rural areas, and the human capital spillover from rural area to urban area further expand the urban-rural income gap. Finally, this paper summarizes the research process according to the above theoretical and empirical analysis, and then presents some of the corresponding countermeasures and suggestion for narrowing the income gap between urban and rural areas on the basis of the analysis. This paper suggests that:it is necessary to narrow the gap between urban and rural areas in terms of human capital accumulation in order to narrow the income gap between urban and rural areas of China’s long-standing problem, and thus to strengthen rural education spending and health care investment, while the government should create the necessary condition for the role of human capital and improve the working environment in the rural area.