Abstract:Industrial structure adjustment is the important regulating method for goverments to reach the macroscopic development strategy,which has the obvious effects of income distribution.Based on panel dataset from 30 provinces inChina between 1998 and 2012,this paper uses simultaneous equation model and distribution-lag model to study the influencing mechanism of of industrial structure adjustment on income gap of urban and rural areas.The result shows that industrial structure adjustment is negatively related to income gap in the short run.And in the long run,according to the industrial structure adjustment,the urban and rural residents will reshape the employment expectations by adjusting the human capital investment structure and enhancing the level of human capital to achieve professional conversion.Then rural residents income growth will be higher than that of urban residents,which will form rural-urban income surpassing effect so as to produce positive effect of narrowing the income gap between urban and rural areas.