ABSTRACT
The income gap between urban and rural residents is big. The distribution in kind is actually an invisible welfare subsidy system. The original purpose of this subsidy system was to compensate the low-income class so as to narrow the income gap. Long-term freezing of salaries resulted in an unfavorable income distribution pattern for the young generation. The income gap is indeed widened, but actually it exceeds the range of overcoming equalitarianism. The inter-regional resident income gap, especially whether the relative gap has been widened, has always been a controversial issue in the academic community. Concerning the changes and problems related to the income gap, there have been all kinds of discussions on their causes and effects in the academic community and in society. In principle, regulation by means of taxation and welfare, namely redistribution of income, should be able to narrow the income gap.
