Rural citizens now earn on average about 30 percent less than their urban counterparts. This difference in income also encourages people to move out of rural areas. Unfortunately, this migration is highly selective and drains the human capital and talent from rural areas. It is the younger, better educated, healthier, more entrepreneurial people who leave. Working on the rural side of the equation alone won't resolve the problem.
Urban centers are highly attractive to the migrants because that is where the jobs are located.
The concentration of economic activities in these centers is due in part to the direct and indirect subsidies available to the firms that locate there. These subsidies are reflected in publicly built water and sewage systems, occasional tax relief for location in these centers and the continued construction of transportation systems to alleviate congestion. This illustrates why the widening gap in incomes between urban and rural areas is not something that will be solved only by addressing the problems of rural areas. Clearly, steps need to be taken to strengthen schools and training programs in rural areas, and to improve the rural infrastructure. This will encourage other economic activities to locate there.