The great income gap between urban and rural residents is one of the important problems in the economic development of Shanxi Province, The difference in income will continue to increase and affect social stability and also economic sustainable development. Based on the per capita income of urban and rural residents of Shanxi Province from 1995 to 2009, we find the income gap between urban and rural residents is widening. Considering the city and countryside wage income, the city management income, the city and countryside shift and property income, this paper analyzed their contributions to urban-rural income gap, and find that the most important factor is city and countryside management income. it has the biggest influence on the inhabitants of cities and countryside. Second is the wage income. Lastly, the city and countryside shift and property income. Property income and shift income are the smallest factors being used to determine the city's inhabitant's income differences.
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