The study is designed to examine the causes of income inequality between urban and farm households across quantiles of income distributions, using the household level data from 2003 and 2007. This paper apply a quantile regression decomposition technique to analyze the difference of income distributions between the urban and farm households. The results show that differences in human endowment such as age, education, the number of family members explain most of the income gap between the urban and farm households. Also, the results of the quantile decomposition find that the urban-farm gap for lowest quantiles is primarily due to differences in human endowment, but the gap is reduced for highest quantiles due to higher returns to human endowment of farm households than the urban households.