The Reasons for the Income Gap between Urban and Rural Residents in China

With the rapid growth of the economy, China's urban and rural income gap showed a rising trend since 1978.Based on the empirical data of China from 2005 to 2014, this paper will study the dynamic relationship and mechanism between the income structure and the income gap between urban and rural areas from the perspective of proportion.The results show that the wage income is the strongest factor in the expansion of the income gap, the second is the transfer income, and the property income is the weakest, while the operating income is the only income to narrow the income gap.