In order to understand the effect of population urbanization on the income structure of farmers, based on the provincial panel data from 2002 to 2020, this study uses the 2SLS regression model to explore the effect of China’s population urbanization on farmers’ income increase and income structure. The differences in the impact of different regions are compared and analyzed. The results show that: 1) Population urbanization can significantly increase the income of rural residents and narrow the income gap between urban and rural residents. 2) Population urbanization mainly increases the proportion of farmers’ wages and property income, but reduces the proportion of business and transfer income. 3) There are regional differences in the impact of population urbanization on the income structure of farmers. The eastern region is basically the same as the national situation, and the central region mainly shows a reduction in the proportion of business income; The characteristics of the effect in the west differ from both the east and central regions. This study provides policy implications for how to ensure the growth of farmers’ income from different sources in the context of rapid population urbanization in China.
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