Research on the Influence of Urbanization on Income Gap between Urban and Rural Areas—Based on Income Source

According to China’s panel data between 2002 and 2016, the present thesis first analyzed the overall effects and time effects of urbanization on wage disparity, net operating income disparity, net property income gap, and net transferred income disparity between urban and rural residents, and then analyzed the overall effects and time effects of each income disparity on the total income gap between urban and rural residents. In general, the impact of urbanization on urban-rural income disparity was studied from the perspective of income sources. The results show that urbanization bridges the income gap between urban and rural areas, with an inverted U-shaped structure which increases first and then narrows, from the income sources perspective. So, the targeted and operational policy recommendations are proposed.