Abstract:The development of agricultural socialized services increases agricultural productivity and substitutes agricultural labor inputs, thus having an impact on both agricultural and urban economies. In this paper, we analyze the urban employment, skill premium and urban-rural income inequality effects of agricultural socialized service development by building a three-sector general equilibrium model and analyze numerically with Chinese macroeconomic data. We draw some practical conclusions, such as the development of agricultural socialized services raising agricultural wage and, reducing the urban-rural income inequality and unemployment rate; the specialization of agricultural socialized services expanding the skill premium in the capital sectoral specific case and narrowing it in the capital mobility case, while the popularization of services generating inverse results. These findings enrich the study of agricultural socialized service systems.