This book comprehensively uses of Two element economic structure theory, institutional change theory and human capital theory, dynamic analysis method, the combination of empirical analysis and normative analysis, the income gap between urban and rural residents and their genesis evolution path for the comprehensive and in-depth studies. Book overcomes the problems associated with a framework to analyze and study the problem of single, thus bringing forward the narrowing of income gap between urban and rural residents policies more comprehensive system. A unique feature of this book is using a variety of dynamic measurement method, with the latest data on income gap between urban and rural residents, caused the evolution path of our empirical study, including the panel unit root test, panel data fixed effects model, principal component analysis, the VAR model, Grainger Granger causality and impulse response analysis. These analyses not only clarify the income gap between urban and rural residents causes evolution path, but also for researchers to provide theory and method is beneficial draw lessons from.