Wealth gap in rural China nears warning level

The income gap between the two groups shows how large the gap is between urban and rural areas, said Xu Yong, chief of the institute, adding that it will force more rural residents to abandon farming and leave the countryside.

"As a result, the cities will likely face more pressure and problems will emerge in the country's agricultural production," he warned.

The institute's researchers said rural infrastructure needs to be improved to make life better there, while policies and technology should be introduced to boost agricultural production and make it more lucrative.

In the cities, migrant laborers should be viewed as equal to urban residents in terms of employment and social security, the researchers said, considering the fact that migrant laborers have little social security and are often charged huge fees to send their children to schools.

Despite rising incomes for rural households, the report said their education and health care costs have also surged, adding to their financial burden.

On a per capita basis, education and health expenditures were 1,518.6 yuan and 673.9 yuan last year, respectively, accounting for 22.4 percent and 9.95 percent of the total.

The report also said a "considerable" amount of rural residents have had to borrow money to provide adequate financial support for their children at school.

Although great numbers of rural residents are lifted out of poverty every year, there are also those who fall back into poverty because of the huge costs involved in fighting serious illnesses and natural disasters, said Xu. "The country should see to such matters."