DOI: 10.36347/sjahss.2015.v03i03.008

Pages: 642-645

Based on the fact that Sichuan province is one of the leading provinces that have major labor transfer and huge agricultural industry, especially traditional one, the author of the paper made a quantitative study of the impact of various factors on the urban and rural income gap by building the principal component analysis model based on the statistical data of Sichuan province from 1995 to 2013. The empirical results show that increasing the coordinating level of industrialization and urbanization, accelerating labor transferring from agriculture to non-agricultural employment and enhancing investment in fixed assets in rural areas can significantly narrow down the income gap between urban and rural areas in Sichuan. Therefore, both Sichuan and other less-developed regions should break the household registration system, accelerate the harmonious development of urban and rural employment to construct the unified urban and rural human resource market, strengthen the coordinated development of urban and rural industries to promote the synchronized increase of economy and employment and advance the integrated development of urban and rural systems to realize the equilibrium of urban and rural income distribution.