Analysis on Regional Structure,Income Structure and the Change in the Rural Income Gap of China

The essay is based on the data of rural per capita net income from 31 provincial-level administrative regions in 2000—2009.Theil index is used to decompose the regional structure of the rural income gap and the Gini coefficient decomposition method is used to measure and decompose the income structure existing rural per capita income gap.The results show that,since 2000 there are minor fluctuations in the Gini coefficient and the Theil index,but no obvious increase or decrease.There is no indication that during 10 years per capita income gap of rural residents significantly expands or contracts,which has much to do with the implementation of national macroeconomic policies.The results of the regional decomposition of the rural income gap show the country's rural income gap mainly roots in the inequalities between the four regions,the east,the middle-area,the west and the northeast,the contributing degree to the general gap of which is up to 67 %.Within the regions,the inequality in the east accounts for the highest contributing degree,followed by the west,the central and northeastern areas,besides,the inequality between the east and the west slightly tend to expand,while the income gap between middle and northeastern areas tend to contract year after year.In the decomposition of income sources′ structure,it is found that operating income and wage income of farmers are the determinants of general gap.Household operating income plays a balanced role in the rural income gap.Although the proportion of household operating income in the composition of the rural income continues to reduce,it is still the most important income of rural residents.The estimations of the concentration factor from 2000 to 2009 show that wage income,property income and transfer income play the role of widening the gap.Household operating income plays an important role in narrowing the income gap in rural areas.Actively supporting multiform family-run operation of backward areas,improving the capacity of increasing the income of the rural residents by family-run operation,promoting family-run income growth will play an active role in narrowing the income gap of rural residents in China.