Examining the Influence of Urban-Rural Public Service Equalization on the Income Gap through a Human Capital Perspective

This study investigates the impact of enhancement of equity in public services on urban-rural economic divide from a human capital perspective. By employing panel data from 31 provinces (autonomous regions and municipalities directly) in China from 2012 to 2021, the empirical results demonstrate that Urban-Rural Public Service Equalization significantly narrows urban-rural economic divide. Human capital acts as a mediator between Urban-Rural Public Service Equalization and income disparities. By promoting human capital accumulation among rural residents, Urban-rural economic divide enhance their labor productivity and, consequently, reduce income disparities. Based on these findings, this study proposes recommendations to further promote the urban-rural economic divide and optimize resource allocation, aiming to achieve coordinated urban-rural development and income equality.