Abstract: In order to further explore the income distribution among urban residents in Guangdong Province, this article researches the issue from a new angle by adopting the Theorem of exhausted distribution and combining it with the spread CobbDouglas production function. The results show that once social wealth is allocated by marginal product of elements involved in the social production, unequal elements of production owned by urban residents will contribute to income inequality; under the spontaneous distribution of the market, the income gap among urban residents in Guangdong Province will be wider.

Key words: the theorem of exhausted distribution, income gap, the spread CobbDouglas production function