Abstract: From the endogenous growth and fertility selection perspective,we discussed how urbanization, fertility and human capital affected the income gap between urban and rural areas. And using the empirical model we examined the related deduction. We found that:(1)promoting the urbanization process helps to narrow the urban-rural income gap; increasing the fertility rate will hinder income growth; the higher the fertility rate, the greater the income gap between urban and rural areas; the fertility policy raised the significant of fertility onto income gap between urban and rural areas;(2) the greater the urban and rural fertility rate gap, the smaller the effect of fertility rate gap onto income gap between urban and rural; the greater the per capita human capital gap, the greater the effect of per capita human capital onto income gap between urban and rural; the higher the level of area, the smaller the effect of city level onto urban-rural income gap.

Key words: urbanization, fertility policy, human capital, income gap