Research On The Impact Of Industrial Structure Upgrading And Labor Flow On Urban-Rural Income Gap

It has been more than 40 years since the reform and opening up.China’s economic development has made considerable progress,and the living standards of urban and rural residents have been greatly improved,creating a remarkable Chinese miracle.At the same time,however,the income gap between urban and rural residents is increasing,which seriously hinders the further development of China’s economy.How to promote high-quality economic development and alleviate the excessive income gap between urban and rural areas has become an important issue in promoting China’s economic development at this stage,which is also the main purpose of this study.The research literature on the urban-rural income gap is very rich,and the impact mechanism is comprehensive and complex.This paper attempts to analyze the impact of industrial structure upgrading and labor flow on the urban-rural income gap,in order to provide ideas for solving the problem of excessive urban-rural income gap in the new era.Based on the existing theories and relevant literature,this paper analyzes the mechanism of the impact of industrial structure upgrading and labor flow on the urban-rural income gap,and puts forward the research hypothesis of this paper.Then,this paper analyzes the current situation of the urban-rural income gap in China since the new century,analyzes the overall income gap between urban and rural areas in China and the income gap between urban and rural areas in various regions,as well as the difference in living standards caused by the income gap.Then,using the panel data of 30 provincial administrative units in China from 2001 to 2020,the fixed effect model with dummy variables(FE-LSDV)was used to empirically test the proposed research hypothesis.The results of the empirical analysis verify the proposed research hypothesis,that is,at this stage,the upgrading of China’s industrial structure will expand the urban-rural income gap,while the flow of labor will narrow the urban-rural income gap;At the same time,it is verified that the relationship between China’s economic growth level and the urban-rural income gap presents an inverted U-shaped relationship,which meets the Kuznets curve,but this curve is not obvious.Then,this paper uses the first and second order lag values of the industrial structure upgrading indicators as the tool variables to deal with the endogenous problems and carry out regression analysis by using the methods of generalized moment estimation(GMM),iterative generalized moment estimation(IGMM),two-stage least squares method(2SLS),limited information maximum likelihood method(LIML),etc.,and also uses the first order lag values of each variable to substitute into the model for robustness test,The results show that the empirical results are robust and feasible.Finally,according to the empirical test results and the actual situation,this paper puts forward relevant countermeasures to promote new industrialization,break industrial barriers,guide the inflow of surplus labor,improve the level of education,promote the equalization of public services,and build modern agriculture from the aspects of industrial structure upgrading and labor flow.