Previous literature omitted marketization process,a distinct phenomenon in transitional China,when the relationship between immigrants and indigenous urban income is investigated.We find that (1) marketization is a key factor of rural-urban harmonization; (2) segmentation of labor market has no real effect on urban income change since it may be evaded partly by rural labor;(3) the key determinants of urban income change are the cross effect between markedzation and mobility,openness,and govment spending; and (4) the marginal effect of immigrants is positive in some regions although it is averagely negative during the sample period.Rural-urban harmonization is totally possible if marketization process continues.