Urban-rural gap and regional inequality of local household income in Jiangsu Province, China

This paper examines the update patterns of urban-rural gap and regional inequality within Jiangsu Province from a perspective of local household income. A comprehensive model is proposed to quantitively analyse the contributions of socioeconomic factors to the household income level at local areas. We find the household income level is rising rapidly in Jiangsu Province and the urban-rural gap shows a convergence trend over the past decade. Hotspot analysis indicates the low-income clusters at the north and two high-income clusters at the south. The high-income clustering regions cover Greater Nanjing Area and the Sunan region including Suzhou, Wuxi and Changzhou which are geographically around the Tai Hu Lake. A range of socioeconomic factors play roles in the local household income. Population urbanization is a key variable, and highly educated labour make contributions particularly. Output of the service sector proves a significant correlation, while that of the manufacturing sector is not distinct. Multinational companies can also exert positive effects on the household income level at local areas. Urbanized construction, talents attraction and greater market opening benefit the increase of local household income.