Abstract: Rural labor transfer is an important way to narrow the income gap and realize agricultural modernization.The present situation witnessed a bidirectional causality between rural labor transfer and income gap,which means that,in short term rural labor transfer can prohibit the broadening of the income gap,and in long term rural labor transfer widens the income gap.Therefore,we can narrow the income gap by way of strengthening employment training,eliminating employment discrimination,perfecting social security system so as to establish a long and effective protection mechanism for rural labor transfer.

Key words: rural labor transfer, income gap, Granger-causality