Urban-rural Income Disparity Research Articles

Does the Adjustment of Industrial Structure Restrain the Income Gap between Urban and Rural Areas

Abstract Industrial structure adjustment is a process that involves reconfiguring input factors to enhance productivity and efficiency. A crucial aspect of this adjustment is the transformation of the labor force composition, which subsequently affects the employment structure. Consequently, variations in productivity levels lead to the cross-departmental migration of workers, resulting in changes to the income disparities among employees. This article examines the impact of China’s industrial structure adjustment and labor mobility on the urban–rural income gap between 1990 and 2019. Employing an empirical approach, the study investigates the influence of industrial structure adjustment and the direction of labor mobility on the urban–rural income gap. The findings indicate that the quality of industrial structure adjustment contributes to the widening of the urban–rural income gap, whereas labor mobility helps to narrow it. In regions experiencing a net influx of labor, superior industrial structure adjustment amplifies the urban–rural income gap, whereas labor migration diminishes it. Conversely, in regions witnessing a net outflow of labor, superior industrial structure adjustment reduces the income gap, while labor mobility widens the urban–rural income disparity. Notably, in more developed areas of China, the quality of industrial structure adjustment has widened the income gap, whereas labor mobility has narrowed the urban–rural income gap. However, in less developed regions, labor mobility exacerbates the urban–rural income gap.

Can Digital Financial Inclusion Narrow the Urban-rural Income Disparity in Central Region of China?

Can Digital Financial Inclusion Narrow the Urban-rural Income Disparity in Central Region of China?

Digital financial inclusion, industrial structure and urban–Rural income disparity: Evidence from Zhejiang Province, China

Digital financial inclusion, industrial structure and urban–Rural income disparity: Evidence from Zhejiang Province, China

Effect of Entrepreneurship on Urban-Rural Income Inequality in China

ABSTRACT Entrepreneurship is a two-edged sword, promoting economic mobility for some but potentially leading others into poverty. This research explores the effect of entrepreneurship on urban-rural income disparity in China, utilizing data collected in 265 Chinese cities from 2013 to 2019. Using a two-step System Generalized Method of Moments (GMM) for dynamic panel data, we found that entrepreneurship consistently reduces income inequality across various income levels in different digitalization environments. The findings underscore the significance of entrepreneurship in narrowing the disparity in income between urban and rural areas. Policies would be adaptable to the challenges and opportunities in different locations, with the goal of creating a favorable climate for the growth of both urban and rural economies.

Heterogeneous impacts of the high-speed railway network on urban–rural income disparity: Spatiotemporal evidence from Yangtze River Delta of China

The socioeconomic effects of China’s fast-growing high-speed railways (HSRs) have become a popular issue in recent decades. However, few studies have examined how HSRs alleviate the urban–rural income disparity temporally and spatially; the current research addresses this gap in the literature from novel network accessibility and connectivity perspectives. Using different spatiotemporal models to analyze the Yangtze River Delta in China, the main findings are as follows: (1) there is evidence that the HSR network alleviates the urban–rural income disparity and exhibits a stronger positive impact on rural residents’ income; (2) compared with HSR accessibility, HSR connectivity affects the income disparity in a more significant manner; (3) due to its advantage in capturing the spatiotemporal heterogeneities of HSR’s impact, the geographically and temporally weighted regression (GTWR) model demonstrates a higher accuracy than other models; (4) the GTWR model results show that the HSR network affects the income disparity both negatively and insignificantly in Northern Jiangsu or Southwestern Zhejiang, while this effect is significant in other regions; and (5) further empirical evidence indicates that this varying effect is in light of differences in tertiary industry development and economic growth. These findings provide a novel opinion of HSR’s socioeconomic effects and present useful empirical support for solving the serious urban–rural income disparity problem in China.

Influence of Transportation Accessibility on Urban-rural Income Disparity and Its Spatial Heterogeneity

Influence of Transportation Accessibility on Urban-rural Income Disparity and Its Spatial Heterogeneity

From Countryside to City: How Land Property Rights Drive Migration in China

China’s remarkable economic surge since the 1970s hasn’t erased the pronounced economic disparities across different regions, most notably between rural and urban locales. Rooted in the historical division of land rights and usage stipulated by economic reforms, this urban-rural dichotomy has fostered varied development patterns in infrastructure, primary industries, and foreign trade and investment. At the core of this dichotomy is the contrasting landscape of land property rights—state ownership in urban areas with permissible leaseholds versus collective ownership in rural areas with restrictions on transfer or leasing. This paper investigates how these divergent land property rights regimes have engendered significant migration patterns, predominantly marked by rural to urban migration, in pursuit of better economic prospects. Through a meticulous examination of the Household Responsibility System (HRS) and subsequent agrarian reforms, this paper elucidates how partial property rights and restrictions on land transferability under HRS have had substantial repercussions on domestic migration. The analysis delineates how well-defined and secure property rights, as postulated by prominent theories of property rights, are instrumental in incentivizing migration. When operational, market mechanisms of land property rights enable farmers to lease their lands, thereby fostering migration by reducing the opportunity cost of leaving rural lands. Conversely, in the absence of robust property rights, government mechanisms often lead to forced land acquisitions sans adequate compensation, exacerbating rural-urban income disparities and propelling rural-urban migration. The paper expounds on the multifaceted implications of these migration patterns on economic opportunities, poverty alleviation, and urbanization in China. Additionally, it discusses the ripple effects of rural-urban migration on income disparity and the consequent socioeconomic repercussions. The findings shed light on the complex interrelationship between land property rights and migration, providing a nuanced understanding of China’s urbanization trajectory and its attendant rural-urban disparities. This analysis offers valuable insights for policy formulations aimed at addressing the systemic issues arising from the entrenched land property rights framework, and suggests a pathway towards a more balanced regional economic development and sustainable urbanization in China.

The impact of tax competition on urban-rural income gap: a local governance perspective

ABSTRACT In China, the regional economic development model affected by government competition is an important factor leading to the income inequality of urban and rural residents. This paper aims to study the influence mechanism of tax competition among local governments on urban-rural income gap from the perspective of government intervention and tries to explain the reasons for the gradual narrowing of urban-rural income disparity since 2010. Using a dynamic panel data of 30 provinces, this study reveals that tax competition has alleviated the urban-rural income gap, and this effect shows temporal extensibility and spatial correlation. It is more obvious in eastern and central China and consistent in different local tax categories. Although tax competition has narrowed the overall income gap, the wage income inequality has been exacerbated. In addition, local fiscal autonomy, urbanization, public service provision and industrial structure are the important influencing channels of the mechanism.

Impacts of Digital Financial Inclusion on Urban–Rural Income Disparity: A Comparative Research of the Eastern and Western Regions in China

This study aims to investigate the influence of digital financial inclusion on China’s urban–rural income disparity. A comparative analysis on income differences between western and eastern regions in China was conducted in this paper. The study utilized a static panel approach as it consisted of 22 provinces in China that covered the period from 2011 to 2020. This paper employs Stata software for the data analysis. The dependent variable of this study is the urban–rural income gap. Meanwhile, the independent variables consist of the total index level, breadth of coverage, depth of use, degree of digitization, digital payment level, digital insurance level, and digital credit level. The control variables employed in this article are education level, financial support, economic transformation, technological progress, and trade openness. The empirical outcomes indicate that the seven independent variables potentially minimize the urban–rural income gap between the two regions. However, digital financial inclusion appears to have a more significant effect in lessening the urban–rural gap in the western region compared to the eastern region in China. The findings demonstrate that all the variables exhibit a higher degree of influence on the urban–rural income differences in the west than in the east, except for the credit index. The outcome reveals that the effect of the credit index in the western region (0.10%) is slightly lower than the eastern region (0.11%). In general, the present findings can provide valuable insights for policy makers in their efforts to address the urban–rural income gap in the two regions through the implementation of digital financial inclusion initiatives. The study should be conducted regularly to observe the trend of the income disparities between the western and eastern regions in China. Future studies can also focus on other regions or narrow the focus to provincial and city levels to capture more detailed information.

The impact and regional heterogeneity analysis of tourism development on urban-rural income gap

Based on the panel data of 204 cities from 2008 to 2020, the study first uses the mixed OLS model and two-way fixed effect model to verify the direct impact of tourism on the urban-rural income gap. Next, we employ the instrumental variable method, as well as estimation methods such as 2SLS and GMM, to test for endogeneity problem present in the study. Furthermore, the mediating effect model is used to examine the mechanism through which tourism affects the urban-rural income disparity. The findings indicate that rural infrastructure acts as an intermediary between tourism development and the reduction of the urban-rural income disparity. Furthermore, the impact of tourism on narrowing the income gap seems to diminish gradually from the western regions to the eastern ones.

Research on the Impact of Tourism on the Urban-rural Income Disparity and Countermeasures

At present, the most important issue for economic development is how to ensure the coordinated development of all aspects. At present, the country's focus has shifted from all-round moderate prosperity to the issue of average development. Therefore, how to ensure and implement the average of resources and the exploration of implementation plans are currently more important research. Tourism is a recent emerging economic industry and plays a great role in promoting China's economic level. Starting from the current development status of China, this paper comprehensively analyzes whether tourism will affect the income difference between urban and rural residents through literature retrieval and case analysis. Explore how this element can be positively promoted. After research, we conclude that the development of tourism can indeed promote the balance of urban and rural development, but at the same time, it will also cause the problem of improper resource development and mismatch between the speed of tourism development. Therefore, countries need to respond to the situation. For example, strengthen the management of tourism resources, strengthen the publicity and governance of scenic areas, and so on. These optimization policies will definitely effectively alleviate and optimize the existing differences and differences, and realize the average quality of life of residents as soon as possible.

Research on the Family Income Gap in China

This paper will start with an investigation of the current consumption situation (consumption structure) and the consumption concept of college students at Chongqing University, and investigate the family income, the monthly living expenses of students (whether there is a work study program) and the current loan situation of college students. Based on this problem, this study plans to use the questionnaire and literature survey methods to investigate the income gap of the families behind the college students through the consumption survey. Through the investigation and sorting of consumption, we can see the family income reflected thereby, and compare the gap between the rich and the poor reflected from different angles. This paper further considers the current consumption situation of college students and what consequences the income gap has brought or will bring, as well as the reasons affecting the income gap. At this stage, particular attention should be paid to the issue of urban-rural income disparity and inequality. In the context of Chinas dual economy, household income inequality mainly comes from inequality between urban and rural areas. Effectively improving the income level of rural residents and narrowing the urban-rural gap are the main targets for achieving common prosperity. To achieve common prosperity, first, improve the income distribution system and the macro income distribution structure. Second, increase the income of low-income groups and accelerate the formation of an olive-shaped structure. Third, improve the social security system to alleviate the challenge of excessive income disparities among groups. Fourth, promote the equalization of basic public services in urban and rural areas, and address income inequality. Fifth, increase public investment in human capital and enhance social mobility.

The Impact of Climate Change on the Urban–Rural Income Gap in China

Based on the annual average climate data and economic and social data from 262 prefecture-level cities in China from 2001 to 2019, this paper explores the impact of climate change on urban–rural income inequality and its mechanisms using fixed-effects (FEs) and mediated-effects (MEs) models. This study finds that (1) climate change has an inverted U-shaped relationship with the urban–rural income disparity; (2) climate change can affect the urban–rural income disparity by influencing urban and rural income levels, the regional degree of urbanization, and the labor force employment structure; (3) the impact of climate change on the urban–rural income gap is heterogeneous in East, Center, and West China; and (4) extreme heat can widen the urban–rural income gap, and extreme drought can narrow the urban–rural income gap. Climate change has a significant impact on the urban–rural income gap, and there is a need to continue to promote urbanization and the optimization of the employment structure of the workforce, reduce the vulnerability of rural residents to climate change, and narrow the urban–rural income gap.

Impact of the Urban-Rural Income Disparity on Carbon Emission Efficiency Based on a Dual Perspective of Consumption Level and Structure

Utilizing Chinese provincial panel data from 2006–2019, this paper applies the super-efficient epsilon-based measure (EBM) model including non-desired output to measure carbon emission efficiency (CE) and analyze spatio-temporal characteristics of CE, in which social fixed asset investment, energy consumption and urban employment per unit are used as input indicators and regional GDP and CO2 emissions are used as output indicators. Additionally, we use the spatial Durbin model to explore the impact of urban-rural income disparity (URID) on carbon emission efficiency and its spatial spillover effect and explore indirect mechanisms of consumption level and consumption structure on CE using mediating effect test. The results showed that: (1) The national CE level generally declined between 2006–2012 and fluctuated upward from 2013–2019. The trend of regional CE showed “high in the east and low in the west”. (2) The “inverted U” model accurately reflects the relationship between national CE and URID, with a “U” shaped association in the central, western, and northeastern regions, and a positive correlation with consumption level and consumption structure. (3) There is a significant mediating effect of consumption level and structure in the mechanism of URID in regulating CE. Local governments should adopt local policies, take measures to narrow URID and CLD, advocate low-carbon and environmentally friendly living for residents, and promote the upgrading of consumption structure to boost carbon emission efficiency.

The Impact of the Rural–Urban Migration of Chinese Farmers on the Use of Rural Homesteads: A Threshold Model Analysis

China’s urbanisation process is unique compared to that of other developed economies in that while the rural population is migrating to the cities in large numbers, the area of rural homestead use also continues to increase. This research uses macro data and a threshold model to further analyse this phenomenon of “farmers leaving while rural homestead increasing”. Specifically, we focus on the mechanisms of action, development patterns and regional differences in the impact of the rate of rural–urban migration (RRUM) on the rate of increase in the area of rural homesteads (IARH), and discuss the spatial spillover effects of the impact between the two. The results of the research show that: (1) There is an “inverted U-shaped” double threshold effect on the impact of RRUM on IARH. (2) Rural population density and regional urban–rural income disparity are used as threshold variables, respectively, resulting in a sudden change in the relationship between RRUM and IARH. (3) The threshold effect of RRUM on IARH mainly exists in the central and western regions, non-minority nationality areas, non-provincial capital cities and non-resource-based cities. (4) The RRUM can not only directly affect the local IARH, but also indirectly affect the surrounding areas through spatial spillover effects. Our research provides critical insights for policy makers on the reform of the rural homestead system and urbanisation development strategies in different regions.

Transcending Hukou Barriers Effectively Unleashes the Income-Raising Effect of Education: Based on an “Agricultural to Non-agricultural Hukou Conversion” Perspective

The relatively low rate of return to education has played an important role in explaining the urban-rural income disparity. However, rural residents have a high demand for education, and one significant reason is that education can help them break the restrictions of the household registration (hukou) system and obtain a higher income. Using data from the 2017 China Household Finance Survey (CHFS 2017), this study employs unconditional quantile regression to find that after reclassifying individuals who have experienced agricultural to non-agricultural hukou conversion back to the rural household registration category, the income-promotion effect on the rural population of completing high school and university education is significantly enhanced. The decomposition analysis using the recentered influence function (RIF) reveals that when considering the agricultural to non-agricultural hukou conversion group, the income disparity between urban and rural areas caused by education is noticeably alleviated. Furthermore, the endogenous switching regression model finds that individuals with agricultural hukou are generally less likely to work in formal institutions. Improving educational attainment helps increase the probability of their obtaining non-agricultural hukou and entering formal employment, resulting in higher income. Hence, policymakers should focus on improving the quality of rural education and reforming the household registration system to gradually eliminate the occupational segregation and income disparity caused by hukou barriers.

Can the Low-Carbon Transition Impact the Urban–Rural Income Gap? Empirical Evidence from the Low-Carbon City Pilot Policy

Environmental transformation is a broad and profound economic and social systemic change, which will certainly influence a number of the economic system fields. In particular, does China’s continued low-carbon transition widen the urban–rural income gap while achieving energy conservation and emission reduction targets? This research investigates the effects of low-carbon city pilot (LCCP) programs on urban-rural income gaps and associated mechanisms using a panel of 282 prefecture-level cities from 2007 to 2021. The analysis finds that: (1) LCCP policies exacerbate the urban-rural income disparity in general. In pilot cities, policy implementation widens the urban-rural income difference by roughly 0.5% on average when compared to non-pilot cities. (2) LCCP policies have a direct U-shaped association with employment structure and have a favorable influence on employment structure. (3) The LCCP policies have an inverted U-shaped association with regional innovation capacity, and the LCCP policies have a positive influence on regional innovation capacity. (4) The effects of LCCP policies on urban-rural income disparities vary dramatically between cities based on geography, city size, and resource endowment. The Chinese government should break down market segmentation and encourage urban-rural integration in order to foster technical advancement and scientific and technology innovation, therefore closing the urban-rural income gap and attaining high-quality economic growth in China.

Research on the Impact of Sustainable Urbanization on Urban Rural Income Disparity in China

There is a large gap between China’s urban and rural income. The urban rural income disparity (URID) is particularly prominent. This paper deeply studies the interaction between sustainable urbanization (SU) and the URID in China by taking the construction of a new urbanization plan with Chinese characteristics suggested in China’s 14th Five-Year Plan as the research background. Firstly, the paper puts forward the hypothesis of an inverted U-shape between SU and the URID through impact path analysis. Secondly, a nonlinear panel regression model (NPRM) and a threshold regression model (TRM) are constructed to test the hypothesis. Research findings: (1) The NPRM shows that the quadratic coefficient is significant and negative, so the assumption is true, and an inverted U-shaped relationship exists. (2) The result of the TRM shows that SU passes the single threshold test, and the hypothesis of a U-shaped relationship is tenable. (3) Economic development has narrowed the URID; economic openness and road network construction have increased the URID; education has no significant impact on the URID.

Effect of Digital Economy Development on Rural-Urban Income Disparity: Evidence from China

Promoting income equality between urban and rural residents is one of the main goals of China’s social progress and economic development. It is also a necessary means to achieve “common prosperity.” Digital economy can effectively promote economic development, the adjustment of industry structure and industry upgrading, as well as increase the disposable income of urban and rural residents, which is theoretically beneficial to rural-urban income disparity. An empirical analysis is conducted based on the data of 30 provinces, municipalities, and autonomous regions in China from 2013 to 2020. The findings demonstrate that the growth of digital economy helps lessen rural-urban income disparity and has a significant effect in East China and North China.

Key issues in promoting rural revitalisation in China

Since the rural revitalisation strategy was first introduced in the 19th National Congress of the Communist Party of China, government agencies and scholars have put forward a series of indicators to measure its implementation. However, such a large number of indicators complicate the process. The rural revitalisation strategy aims to boost agricultural labour productivity, reduce the urban–rural income disparity, and promote the equalisation of basic public services, thereby accelerating the modernisation of agriculture and rural areas. This paper puts forward five indicators to evaluate the progress of implementing the rural revitalisation strategy. The indicators, though simple, underscore the key issues in promoting rural revitalisation in China. This paper also suggests that the rural revitalisation policy should aim to improve the quality of life of the rural population and promote the equalisation of basic public services rather than to reverse the population flow brought by industrialisation and urbanisation.