The Impact of Urban Industrial Structure on Citizen Income: Evidence from China
DOI:
https://doi.org/10.61173/x48tvv52Keywords:
Urban industrial structure, Citizen income, Urban-rural income gapAbstract
Technology advancements and the rise of new sectors have caused a steady shift in the urban industrial structure of cities. It is crucial to adopt effective policies to ensure that the industrial structure is conducive to economic development. This study aims to investigate the specific impact of urban industrial structure on residents’ income and how it promotes economic development from the individual level to the city level. Based on data from 5900 prefecture-level cities from 2003 to 2022, the empirical results show the following: (1) Urban industrial structure can significantly benefit both urban and rural residents’ income positively, albeit with a larger marginal effect for urban residents. (2) Enhancing urban industrial structures, rationalizing industrial structures, and upgrading industrial structures can considerably close the economic disparity between urban and rural areas in the corresponding locations. In light of these findings, policymakers should prioritize optimizing urban industrial structures for broader income growth. Balancing industrial reforms between urban and rural areas is crucial for sustainable economic development.
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