| Abstract | With the rapid development of economy, property income rises and there are considerable differences among classes, between urban and rural household. The impact of property income on total income gap should not be ignored. This paper tries to focus on the impact of the internal structure of property income and household characteristics, using the microeconomic data, and provides some useful reference for narrowing the income gap. The result shows that among the property income sources, rent and investment income of financial assets play an important role in widening the property income gap, while interest and insurance benefits can decrease it. And the differences between urban and rural areas, the regional differences, skill training level and the degree of risk preference are the factors that influence the property income inequality. All of them could explain 23.44% of the property income inequality. The policy to improve residents' property income should be more inclined to low-income groups. For example, we should develop the economy and education level of poor area, control the overheating growth of real estate market, improve the system of affordable housing and promote the construction of property tax system. It is very important to control the excessive growth and structural imbalance of property income, therefore, making property income becomes the proper way for residents to increase living standards and share the achievements of economic development. |