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This paper examines the impact of residents’ human capital investment inequality on the urban–rural income gap, using China’s provincial panel data from 1997 to 2013. The results show that, at the national level as well as at the regional level, residents’ overall human capital investment inequality has a positive significant impact on the urban–rural income gap. In addition, the impact of overall human capital investment inequality increased monotonically from the eastern region inward to the western region. In terms of the relative impact of each component of human capital investment inequality on the urban–rural income gap, migration investment inequality appears to have the greatest impact at the national level, whereas health investment inequality has the greatest impact on the urban–rural income gap in the eastern region, and education investment inequality exhibits the greatest impact in the central and western regions. We also investigate the impact of human capital investment inequality on the urban–rural income gap over different periods. The results show that residents’ overall human capital investment inequality had a positive impact on the urban–rural income gap in the period 1997–2008, but the impact rapidly shrunk in 2009–2013. Furthermore, the impact of residents’ health investment inequality on the urban–rural income gap shows a downward trend, and the impact of residents’ education investment inequality trended slightly upward from 1997 to 2008, and then rapidly shrunk in 2009–2013. Finally, the impact of residents’ migration investment inequality was only significant in 1997–2002.

The digital economy is expected to revive the countryside and reduce the current level of urban–rural inequality. Nevertheless, whether rural e-commerce can narrow the urban–rural income gap still requires further analysis. The purpose of this paper is to clarify whether this goal is, in fact, being achieved.

Taobao villages have become the epitome of rural e-commerce development in China. Therefore, this paper matches the data of Taobao villages and the data of prefecture-level cities from 2014 to 2019, and employs a two-way fixed effect model, nonlinear model, instrumental variable model and interactive fixed effects model to explore the impact of rural e-commerce on the urban–rural income gap.

Firstly, the ability of urban residents to share rural e-commerce development is higher than that of rural residents, which actually widens the urban–rural income gap. Secondly, the migration to cities of rural families that have profited from e-commerce, and the return of working-class people to the countryside, are two factors that are contributing to the widening of the urban–rural income gap. Thirdly, the farther the distance from the urban area and the higher the spatial agglomeration of the rural e-commerce cluster is, the weaker the impact on widening the urban–rural income gap will be. Finally, while industrial-led rural e-commerce is responsible for widening the urban–rural income gap, agricultural-led rural e-commerce has no significant impact on the urban–rural income gap.

To the best of the authors' knowledge, this paper is the first to analyze the impact of rural e-commerce on the urban–rural income gap from the perspective of the coverage of Taobao villages. This empirical study will enrich existing theoretical perspectives on urban–rural integration under the backdrop of the digital economy.

This paper aims to test the causal relationship between urban-biased policy and urban-rural income gap and further examine the moderating role of government intervention.

Based on the provincial Government Work Reports and the long-term policy practice of implementing the target responsibility system, the authors construct a unique indicator of urban-biased policy in China. Further, applying the panel data of 30 Chinese provinces in 2003–2018, the authors explore the causal relationship between urban-biased policy and urban-rural income gap.

The results show that urban-biased policy has contributed to the widen urban-rural income gap in China, which supports Lipton's urban-biased hypothesis. Further research shows that the stronger the government intervention, the bigger the role of urban-biased policy in widening urban-rural income gap.

On the one hand, this study not only investigates the direct effect of urban-biased policy on urban-rural income gap, but also examines the moderating effect from the perspective of government intervention, which helps to enrich the relevant studies of urban-biased theory. On the other hand, the authors' findings provide the latest empirical evidence for urban-biased policy to widen urban-rural income gap and presents a reference and warning for China and other developing countries about balancing the relationship between equity and efficiency during economic development.

This paper aims to investigate the effect of rural-urban income gap on agricultural growth in China and its dynamics over time and across regions since reform and opening up.

Two types of indices are constructed to measure the rural-urban income gap: the intra-provincial index and the inter-provincial index. A provincial panel data from 1978 to 2010 and growth accounting method are used to estimate the size of the adverse effect of rural-urban income gap on agricultural growth in China.

The empirical results show that both indices of rural-urban income gaps are negatively associated with agriculture output, but the inter-provincial rural-urban income gap produces a larger adverse effect than the intra-provincial rural-urban income gap. Growth accounting analysis further shows that such adverse effects are decreasing over time and are larger in the central provinces. The results represent resource diversion effects of rural-urban income gap on agriculture.

This paper bridges the gap in existing literature on the relationship between sectoral income gaps and agricultural growth, which confirms Schultz's argument that agricultural activities are efficient even in developing countries and the rural resources diverted out by income gap are not surplus. The results imply that equalized rural-urban and regional policies are required to maintain sustainable agricultural growth in China.

Taking 30 provincial samples from 2001 to 2017 in mainland China as the research objects, this paper aims to evaluate the impact and effects of foreign direct investment (FDI) on the urban–rural income gap and reveals heterogeneity across regions.

Firstly, the Theil index is used to measure the income gap between 30 provinces in mainland China from 2001 to 2017, then the spatial econometric model is used to empirically test the impact of foreign direct investment on China’s urban–rural income gap and its heterogeneity across regions. Finally, a robustness test is performed.

The results show that there is a significant inverted U-shaped relationship between FDI and the urban–rural income gap in China. That is, FDI expands the urban–rural income gap in the short term and helps to converge it in the long term. In the eastern region, FDI has a convergence effect on the urban–rural income gap in the short term, which increases the long term. However, in the central and western regions, the relationship between FDI and urban–rural income gap has a weak inverted U shape.

By assessing the impact of FDI on the urban–rural income gap, this work provides decision-making support for China and other developing countries to improve investment policies and income distribution policies.

The purpose of this study is to elaborate the theoretical mechanism of rural credit input affecting the urban–rural income gap from the perspective of labor transfer, and use a dynamic panel mediation model to test the transmission mechanism of rural credit input affecting the urban–rural income gap through labor transfer, so as to provide an empirical basis for narrowing the urban–rural income gap in China.

This paper constructs a mechanism analysis framework for rural credit input affecting the urban–rural income gap. From the perspective of resource allocation and labor transfer, the authors expound the transmission path of rural credit input to the urban–rural income gap and analyze the theoretical mechanism of rural credit input that affects the urban–rural income gap through labor transfer. Based on this, this paper uses the dynamic panel mediation model to test the effect relationship between rural credit input, labor transfer and urban–rural income gap in 31 provinces of China from 2009 to 2018.

In theory, increasing rural credit input can ease the financial constraints on the development of “agriculture, rural areas and farmers” and provide capital accumulation for the development of rural non-agricultural industries. The development of rural non-agricultural industries can provide more jobs for rural surplus labor, thereby increasing the labor rate of return in rural areas, and ultimately conducive to narrowing the urban–rural income gap. Further, increasing rural credit input can improve the development level of rural non-agricultural industries, thereby promoting the transfer of agricultural labor. At the same time, rural credit input based on the intermediary variable of labor transfer has a significant inhibitory effect on the urban–rural income gap.

This study mainly focuses on the relationship between rural credit input, labor transfer and urban–rural income gap, so it is impossible to use micro-level data to further verify the impact of rural credit input on labor transfer. At the same time, the collection of indicators of rural credit investment in the China Financial Yearbook only started in 2009, which limited the number of samples to a certain extent.

This paper assumes that the economy is mainly composed of urban and rural economic sectors. Therefore, labor can flow freely between urban and rural areas. However, in the near future, China's rural secondary and tertiary industries may develop rapidly, especially with the in-depth implementation of rural revitalization strategy, it is very important to pay attention to the current situation of rural industrial structure and incorporate the factors such as rural industrial structure into the existing model.

This study attempts to provide a new perspective and inspiration for rural credit input, the optimal allocation of labor force and narrowing the urban–rural income gap under China's rural revitalization strategy.

Based on the analysis framework of neoclassical economic theory, this paper uses the constant elasticity of substitution production function to establish an urban–rural two-sector nested model that includes credit supply variables and analyzes the mechanism of rural credit input affecting the urban–rural income gap through labor transfer.

The purpose of this paper is to shed light on the effect of high‐level human capital investment, using tertiary education as the proxy, on the urban‐rural income gap in China.

Using a panel dataset covering 28 provinces of China over the period from 1988 to 2007, this paper employs Hansen's method and two‐step GMM‐SYS estimator to estimate the threshold regression model and the dynamic fixed‐effect panel model, respectively.

The urban‐rural income gap is found to be related to high‐level human capital investment in an inverted U‐shaped pattern with respect to economic development level. The estimated threshold turning point is around 20,000 RMB GDP per capita. This estimate is sufficiently robust to model specifications and variants of the dependent variable.

The authors forecast that high‐level human capital investment could play a role in bridging the urban‐rural income gap at the national level by 2014, when China's GDP per capita assumes an annual growth rate of 7.5 percent.

This, it is believed, is the first research to find an inverted U‐shaped pattern for high‐level human capital investment and urban‐rural income gap nexus in China.

A wide urban–rural income gap exists in China despite the implementation of pro-rural policies. Additionally, with the proliferation of the internet and information technology, the promotion effect of e-commerce on the economy has become apparent. Accordingly, China has been actively encouraging rural households to participate in e-commerce activities. This study aims to examine the effect of e-commerce on the urban–rural income gap.

In the study, linear and panel threshold models were applied to provincial-level panel data from 2002 to 2018.

The results of the linear model show that e-commerce contributes to narrowing the urban–rural income gap. Moreover, the panel threshold model results show that the narrowing effect exists in regions where the e-commerce intensity is at a medium-to-high level and urbanization is at a relatively low level; otherwise, e-commerce has no effect. In addition, in regions with a relatively high level of public expenditure and education, the income-gap-narrowing effect of e-commerce is more than double.

The urban–rural income gap can be reduced by promoting e-commerce and reducing the urban–rural divide in e-commerce use.

To determine how varying levels of e-commerce development affect the urban–rural income gap across regions, the study proposes four key causes of the digital divide in e-commerce: e-commerce intensity, public expenditure level, urbanization level and education level and applies the variables as threshold variables to examine the non-linear effect of e-commerce on the income gap.

Since 2017, China's digital economy has accounted for more than 30% of the country's GDP. The digital economy has become the main driving force of China's economic development. Moreover, the digital economy has also changed the traditional modes of production and distribution between urban and rural areas. This paper aims to explore the influential mechanism of digital economy infrastructure (DEI) on the urban-rural income gap (URIG).

By analyzing the theoretical model of the URIG, this paper constructs a theoretical analysis framework and clarifies the key roles of rural land circulation (RLC) and resident population urbanization (RPU) in the relationship between DEI and the URIG.

The DEI can effectively reduce the URIG; the regression coefficient (RC) was −0.109. The reduction effect is mainly reflected in: 1) the wage income gap between urban and rural residents (RC = −0.128) and 2) the net property income gap of urban and rural residents (RC = −0.321). Also, for the spatial spillover effect, the path effect of “DEI – RLC – URIG” is almost equal to the path effect of “DEI – RPU – URIG”; for the local effect, the path effect of the former is far smaller than the latter. Moreover, when the RPU reaches the threshold of 86.29%, the DEI will expand the URIG (RC = 0.201).

This paper proposes a theoretical framework for the impact of DEI on the URIG, explores the mechanism of RLC and RPU in the DEI and URIG and enriches the theory of traditional research on URIG.

Since 1978, China has made tremendous economic achievements through industrial upgrading. However, these achievements are accompanied by an expanding income gap between rural and urban areas. The purpose of this paper is to examine the relationship between industrial structure and urban–rural income inequality in China.

Using the fixed-effects model and provincial data for the period 1985–2019, this paper estimates a linear relationship between industrial structure and urban–rural income inequality. By decomposing total income inequality into four components, the paper then analyzes how industrial structure affects each component.

The results show that industrial structure imbalance and industrial upgrading are positively associated with urban–rural income inequality. The positive effect of industrial imbalance mainly comes from widening the wage gap, while that of industrial upgrading mainly comes from aggravating business income inequality and property income inequality. Moreover, industrial balance and upgrading are conducive to increasing the share of wage income at the cost of property income.

By progressively examining the total inequality and the inequality of income components, this paper provides a better understanding of how industrial structure affects urban and rural income inequality. The findings of this study highlight the “inequality cost” associated with industrial structure adjustment, which provide policy-related insights on the balance development of urban and rural areas.