Research On The Impact Of Human Capital Investment On Urban-Rural Income Gap

Since the reform and opening up,China's economy has grown rapidly and people's living standards have been increasing.However,with the rapid development of the economy,various inequalities between industries have gradually emerged,mainly due to the increasing income gap between urban and rural residents.The problem of income distribution is an important issue that cannot be ignored in the process of China's economic development.Since the mid-1990 s,the income gap between urban and rural residents in China has continued to widen,and the expansion of the human capital gap between urban and rural residents is an important factor that has caused the income gap to widen.As a country with typical urban-rural dual economic structure characteristics,human capital investment also has dual characteristics.This characteristic shows that there is a significant gap between the rural sector and the urban sector for investment in education and training,health investment,and labor mobility.Therefore,improving the current situation of imbalanced human capital investment in China is of great significance for narrowing the income gap between urban and rural areas and realizing the sustained and healthy development of China's economy.Based on the theory of human capital and income distribution,this paper analyzes the current situation of human capital investment and urban-rural income gap in China,and analyzes the impact of urban and rural human capital investment structure on urban-rural income gap by constructing a theoretical model.Using the statistical data of 31 provinces and cities in China from 2000 to 2016,we established a fixed effect model and a spatial panel data model,which divided the investment gap between urban and rural human capital into three aspects: education,health and labor mobility,and constructed urban and rural human capital investment structure.An empirical model of the impact of urban-rural income disparity.The results show that there is a big gap between the human capital investment of rural residents in China and the urban residents.The greater the investment gap between urban and rural residents in education,health and labor mobility,the greater the incomegap.At present,the increase in government investment in health care and transportation funds will narrow the income gap between urban and rural areas.The increase in education expenditure will exacerbate the unfair income distribution of urban and rural residents,leading to a further widening of the income gap between urban and rural residents.At the same time,through the calculation of Moran's I index,it is found that there is significant spatial correlation between urban and rural income gaps,and a spatial lag model(SLM)and spatial Dubin model(SDM)are established to study the spillover effect of human capital investment gap on income gap.Finally,on the basis of empirical analysis,it proposes relevant policy recommendations to narrow the income gap between urban and rural areas and improve the human capital level of rural residents.