This article studies on the difference in the wage income of rural residents in whole western region and internal provinces with panel data from 1997 to 2008. The result of the empirical analysis is that the development of secondary and tertiary industry, the level of education of rural residents, and the level of urbanization have positive effect on the wage income of rural residents. The greatest impact is the level of education. The second is the level of urbanization and the development of secondary and tertiary industry. And there is regional difference on the extent of the impact of the three factors.