Abstract:From the perspective of distorted land market allocation,this paper explores the reasons for the unbalanced development of urbanization and the growing income gap between urban and rural areas in China.The theoretical analysis shows that the distorted system of guaranteed land market leads to the rural labor force surplus,and a large number farmers who lost land fail to get fair compensation for the loss; though the distorted land market expands the urban area,it does not effectively transfer the rural labor force into the market,resulting in the uneven development of urbanization,and the uneven distribution of value-added income between urban and rural areas after the land enters the market,which finally widens the income gap between urban and rural areas.By constructing the indicators of land market distortion,the empirical test shows that the land market distortion significantly expands the income gap between urban and rural areas,and verifies that this expansion is mainly caused by the impact mechanism of unbalanced development of urbanization.It is suggested that we should abandon the mode of “land-dependent development”,promote the new urbanization with people as the core,ensure that farmers get fair and reasonable compensation for land loss under the market mechanism,and improve the reasonable distribution mechanism of market income.