An Empirical Analysis of the Factors Influencing the Income Gap Between Urban and Rural Areas in China

Abstract

The unbalanced development between urban and rural areas and the income gap between residents restrict the overall economic development and social stability. Based on the cross-sectional data of 31 provinces in China, this paper uses the least square method to build a multiple linear regression model for analysis. The results show that the degree of urbanization, industrial structure, education level and regional openness have a greater impact on the income gap between urban and rural areas. According to this, this paper puts forward some policy suggestions to narrow the income gap between urban and rural areas.