The existing studies focused only on the one-way relationship between the rural surplus labor transfer and the urban-rural
income gap. Using time series data from 1978 to 2011, this paper investigated the interaction about them and found that the rural surplus labor transfer was the urban-rural income gap Granger cause, but the influence was weak and the urban-rural income gap was not the rural surplus labor transfer Granger cause. The results indicated that government should adjust the industrial structure, vigorously develop the tertiary industry, at the same time increase the education and training of rural labor transfer. |