Government support for returning migrant workers' entrepreneurship and urban-rural income gap

Addressing the persistent urban-rural income gap is crucial for achieving social equity and sustainable development, yet the role of government-supported return entrepreneurship in this context has not been adequately investigated. This study employs a staggered difference in difference(DID) method to investigate the impact of the pilot policy supporting returning rural migrant workers’entrepreneurship on the urban-rural income gap at the county level. The findings indicate that this pilot policy can effectively narrow the urban-rural income gap in counties by promoting industrial structure upgrading and entrepreneurship-driven employment. Notably, the gap-narrowing effect is more pronounced in counties with high-speed rail access, in non-poverty counties, and in the eastern and central regions. Furthermore, the COVID-19 pandemic has a positive moderating effect on the relationship between the pilot policy and the narrowing of the urban-rural income gap. The research contributes valuable insights for promoting balanced urban-rural development and sustainable growth in China