Research on the Determining Factors of Income of Peasants’ Differentiation

According to the investigation data of rural households in Anhui Province, this paper analyses the factors determining of peasants’ income in three industries from fours aspects: human capital, social capital, family and demographic characteristics. The analysis shows that there are obvious differentiations that the employees from the first industry to the second and third industry and that in the interior employees of first industry be divided into three types at least. Professional differentiation always accompanies with income differentiation. The regression shows that human capital is the determinant of income differentiation, representing that the employees of first industry has characteristics of highly-educated, strong liquidity, and low stability of income, which flow into the second and third industry and is located in middle and lower classes in the society. There are great diversities in different industries of human capital, social capital, family characteristics, and demographic characteristics. Because of this, we put forward the corresponding policy suggestions in the end.