The relationship between rural surplus labor transfer,urbanization and income gap

Based on the time series data of Shandong province from 2001 to 2018,a VAR model consisting of three variables,namely,rural surplus labor transfer,urbanization and urban-rural income gap,was constructed,and the interaction among the three variables and their characteristics were empirically analyzed.The results show that urbanization and rural surplus labor transfer are Granger causation to each other,and there is a positive correlation between urban-rural income gap and rural surplus labor force in long-term equilibrium,while there is a negative correlation between urban-rural income gap and rural surplus labor force transfer.Therefore,it is necessary to fully recognize the relationship between the transfer of rural surplus labor,urbanization and urban-rural income gap,accelerate the urbanization construction,promote the rural surplus labor to gather in cities,and gradually narrow the urban-rural income gap.