Urban-rural Income Gap Needs Urgent Reduction

ZENG Guoan ( 曾国安) and HU Jingjing ( 胡晶晶)
Economics and Management School, Wuhan University
Institute of the Governmental Regulation and Public Economy, Wuhan University

Editorial note:Since the implementation of the reform and opening policy, income levels of both urban and rural residents have risen greatly. However, the gap between the two is enlarging to not only affect China’s economic growth but also pose a serious challenge to the realization of a more prosperous society. Through varied perspectives examined in this article, readers can obtain an overall understanding of the transformation of the income gap between urban and rural residents in China as well as its impact on people’s consumption levels.

I. Changes in the income gap between urban and rural residents in China since the 1970s
Since the late 1970s, income levels of urban and rural residents have risen dramatically, but at the same time, the income gap has gradually expanded.