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The urban–rural income gap is one of the key explanatory variables in this section, as well as one of the main drivers of the transfer of agricultural labor according to the theory of developmental economics. In this chapter, the urban–rural income gap is measured by the difference between the per capita disposable income of urban residents and the per capita net income of rural residents where the per capita disposable income of urban residents and the per capita net income of rural residents are adjusted based on the CPI of various provinces and regions in 2000.