How does the natural disasters affect urban-rural income gap? Empirical evidence from China

Abstract

Preventing the impact of natural disasters on urban-rural income inequality helps to achieve shared prosperity. This paper uses the functional entropy weight method to calculate the level of natural disasters from 2004 to 2020. Then, this paper discusses the impact of natural disasters on the urban-rural income gap. The empirical results are as follows. (1) Natural disasters have expanded the urban-rural income gap. The regression coefficient is 0.2663, which is significant at the 1% level. (2) In areas with a high proportion of the rural population, the impact of natural disasters is more prominent. (3) Mechanism analysis indicates that natural disasters have widened the urban-rural income gap by restraining rural investment and agricultural production. Finally, this paper suggests strengthening investment in the agricultural sector to mitigate the negative impact of natural disasters.