After studying the main explanatory variables of the urban.rural income inequality, this paper argues that the most important factor is the enlarging differences of comparative product between agriculture and the second, third industry. The basic reason is the disparity of human capital between rural and urban residents' Over the last several years, it's the changes of employment structure and urbanization that play an objective role in the enlargement of urban.rural income inequality. The governmental expenditure has some effects on keeping the inequality within limits' Finally, the problems are proposed, to Which should be paid attention by thc government during the policy.making, based on the theoretical explanation.
