The Sample survey of years 2002-2008 on the Urban and rural households of Guangzhou shows that the ratio between the high and low income households is shrinking. Because of different incremental，especially the different in the wages income，the absolute gap of income and the standard of living is expanding. Lots of factors result in the expansion of households’ income gap，including employment structure，labor quality，income from properties of family，income difference between different industry，corporate profits seizes the labor income and Urban-rural dual structure，Etc. Based on the study，we give several suggestions，such as promoting employment，reforming distribution system，promoting urbanization，to reduce the negative impact from the income gap on our economy and society.