Upgrading of Industrial Structure, Labor Mobility and the Income Gap Between Urban and Rural Areas——An Empirical Analysis Based on the Panel Data of China’s 30 Provinces
LIU Hui 1, FU Kai-bao 2, LI Yong-gang 2
1.Economic Recearch Institute, Shanghai Academy of Social Sciences, Shanghai 200020, China;2.School of Economics, Anhui University of Finance & Economy, Bengbu 233030, China
Abstract:
This paper builds a mathematical model and finds that the industrial structure upgrading will expand the income gap between urban and rural areas while labor mobility can narrow the income gap. Using the 1994-2013 provincial panel data, this empirical study finds that with control over a series of variables, the results support the conclusion of the mathematical model. With a more profound analysis, it is revealed that industrial structure upgrading will expand the income gap between urban and rural areas while the optimization of the industrial structure can narrow it. Labor mobility can also narrow the income gap but has a threshold effect. The study also shows that the income distribution effects of industrial structure upgrading displays certain differences between various regions in China.
LIU Hui, FU Kai-bao, LI Yong-gang .Upgrading of Industrial Structure, Labor Mobility and the Income Gap Between Urban and Rural Areas——An Empirical Analysis Based on the Panel Data of China’s 30 Provinces[J] Economic Survey, 2017,V34(5): 93-98