CHIPS Oaxaca - Blinder % Sicular et al CASS Becker & Chiswick ~ 2000 Becker & Chiswick 196

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1 Comparative Economic & Social Systems No May ~ 2011 F812 A Wu & Perloff 2004 Benjamin et al Sicular et al % % ZDA032

2 CHIPS Oaxaca - Blinder % Sicular et al CASS Becker & Chiswick ~ 2000 Becker & Chiswick 1966 Galor & Zeria 1993 Galor & Zeria Sylwester 2000 Galor & Zeria 1993 Galor & Zeria 1993

3 ω s > 0 ω n > 0 3 h 4 L 5 u = αlogc α logb c b 0 < α < r x x h x < h x < h i > r x h f x < h f = ω n 2 + r + h 1 + i - ω s / i - r x < f x t +1 = { x x t t 1 - α ω + x - h 1 + i f x s t t 1 - α ω s + x t - h 1 + r h xt 1 - α + ω n 1 + r + ω n < f x < f < h 1 2 x n = 1 - α / α 1 + r ω n 2 + r 3 f < x < h g = 1 - α h 1 + i - ω s / 1 + i 1 - α x < g t

4 23 x n g x s = 1 - α ω s - h 1 + r / α 1 + r 5 t 0 x < h 1 N 1 N 2 N 1 = N 2 + N 0 N 0 x h U n x = log x + ω n 1 + r + ω n + αlogα α log 1 - α x h U s x = log x - h 1 + r t 0 ω s + αlogα α log 1 - α x h U s x > U n x 0 < t 0 < 1 - h 1 + r + ω n 2 + r /ω s x < h U d s x = log x - h 1 + i + N 1 t 0 ω s /N t 0 ω s + ε 8 N 2 t 0 ω s /N 2 U d s x > U n x x > f * f * = ω n 2 + r + h 1 + i t 0 ω s - N 1 t 0 ω s /N 2 / i - r N 1 = N 2 + N 0 > N 2 f * < f f h x h x n = 1 - α / α 1 + r ω n 2 + r

5 ~ ~

6 25 Dedu it Dwage it m 1 = α β 1 j = 0 m 2 = α n 1 j Dwage _jit + β 2 j = 0 k = 1 n 2 j Dedu _jit + k = 1 γ 1 k B kit + u it 10 γ 2 k D kit + v it i t t = i t 27 u it v it Dedu 3 Dwage B Fedu i i = Culture 5 GDP Lgdp Age East Central 11 D Lgdp Tax 8 Agri 9 GDP 瑏瑠 Bank 1 90% GDP 瑏瑠

7 Private 2 Urban 3 Open East Central SLS MLE Dwage Dedu Dwage Dedu SLS n Dedu Dwage n = 2 Dwage n = 3 Dwage n = 4 Age Culture Fedu *** *** *** *** *** *** ** ** *** *** Fedu *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** SLS 3SLS = 2SLS + FGLS

8 27 Dedu Fedu2 Fedu2 2 Fedu ** ** Fedu Lgdp Lgdp 2 East Central ** ** * ** *** *** *** *** ** ** * ** *** ** ** * *** ** ** * ** *** ** ** ** *** R *** 1% ** 5% * 10% 2 Dedu n = 2 Dedu n = 3 Dedu n = 4 Lgdp Agri Bank Dwage ** ** ** *** ** ** ** *** * ** ** ** *** ** ** *** Urban * ** * *

9 Tax Private Open East Central Dwage * ** ** *** *** *** ** ** *** *** *** *** ** ** ** *** *** *** ** ** *** *** *** *** R *** 1% ** 5% * 10% i 1 i 2 2 a a 2 a 2 a

10 b 2 b 2 b Fedu2 Fedu2 2 5% 1 4 Fedu2 Fedu2 2 U Fedu2 Fedu U Fedu2 it < Fedu2 it

11 U GDP Age GDP Culture 2 Private Urban Open 2 2 Agri Bank East Central Dedu Fedu3 1

12 31 3 Galor & Zeria ~ 2011

13 Becker G. S. and B. R. Chiswick Education and the Distribution of Earning. American Economic Review Benjianmin Dwayne Loren Brandt and John Giles The Dynamics of Inequality and Growth in Rural China Does Higher Inequality Impede Growth Working Paper University of Toronto. Galor O. and J. Zeira Income Distribution and Macroeconomics. Review of Economic Studies Knight J. B. and R. H. Sabot Educational Expansion and the Kuznets Effect. American Economic Review Sicular Terry Ximing Yue Bj rn Gustafsson and Shi Li The Urban - Rural Income Gap and Inequality in China. Review of Income and Wealth Sylwester K A Model of Public Education and Income Inequality. Working Paper. Carbondale Sourthern Illinois University. Wan Guanghua Ming Lu and Zhao Chen The Inequality - Growth Nexus in the Short and Long Runs Empirical Evidence from China. Journal of Comparative Economics

14 33 The Urban - Rural Income Gap and Education Inequality and Government Spending on Education in China Lü Wei Yang Mo & Wang Yan Dongbei University of Finance and Economics Dalian Abstract This article focuses on how the internal mechanism about the Urban - rural income gap and education inequality in China can be improved by the policy of rural - bias education investment. To achieve this purpose we extend Galor and Zeria's theory model 1993 by incorporating the dual urban - rural structures and government behaviors. Furthermore we build an equation system and distribute the lags model based on provincial panel data from 2001 to 2011 to test the theory model empirically. Empirical results show that the urban - rural income gap is aggravated by urban - rural education inequality. In turn urban - rural education inequality also increases the urban - rural income gap. Moreover reducing the ratio of urban to rural average junior middle school education expenditures can help reduce urban - rural education inequality while reducing that ratio of primary school and senior middle school don't help. The policy suggestion of this paper is that implementing the rural - bias policy and support of rural senior middle school can break the vicious cycle of urban and rural areas effectively. Key words Urban - Rural Education Inequality Urban - Rural Income Gap Government Behavior Human Resources

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