The Study Of The Income Distribution Gap And Its Rationalization Between Administrative Monopoly Industries And Competitive Industries

It’s a hot topic that the gap of income distribution among industries now. In order to solve the unreasonable gap between administrative monopoly industries and competitive industries this thesis compared and analyzed the inner gap and the un-wage income gap of industries in a meticulous and deep going way and established measurement models to explore the origin of that gap which was based on further clarifying that gap. The writer schemed out a Mincer regression model to measure the income of competitive industries which was used to estimate the "theoretical income" of administrative monopoly industries and then estimated the "reasonable gap" and the "unreasonable gap" of income distribution between the two kinds of industries in that way the latter was just the rationalized target of this study. After that, this thesis extracted the obstacle and resistance of the labor transferring between the two kinds of industries from the game model. Lastly, this thesis regarded the administrative monopoly as the origin of the great unreasonable income distribution gap between the two kinds of industries and for this the paper proposed specifically systematic policy suggestion around the middle level and the micro level. The main point and innovation point followed:Firstly, this thesis clarified the policy parentage and the mechanism of policy pushing and thought that the current serious out-of-balance of income distribute was due to the ambiguity of standard, the anomie of scale and potency dimension out of control of income distribute policy.The policy parentage of unreasonable Chinese income distribute gap was just the kinds of policy of widening the income gap in order to break the egalitarianism and stimulate the economy, the principle and gist of which was "Priority to efficiency and Due consideration to fairness" at that time.Because there was no ready-made reference standard of rationalization, in the process of income distribution policy formulation and implementation "Priority to efficiency" was overemphasized and "Due consideration to fairness" often became a mere formality. Especially in the background of transition economy condition that the market economy system and related laws and regulations were all incomplete and imperfect, all sorts of stakeholders were’striving for the maximization of self-interest. In that tide the administrative monopoly industries which recurred to fat profit attaining from administrative monopoly unconfined enlarged their staff’s salary and welfare and even luxurious putrefy, corrupt, waste and even break the law which were constantly exposed to the public, which at last gave rise to serious out-of-balance of income distribution among industries and even the country.Secondly, this thesis distinguished the contribution degree from "administrative monopoly industries" with "administrative monopoly factors", combined extremum method and deviation method with the Theil index method and measures the contribution of administrative monopoly industries to the total gap.It divided all97industries into four industry groups according to their economic property and made use of the average annual labor reward data after eliminating annual inflation, and then, summed all the income gap (dispersion) in absolute value of every industry in the group with the reference object respectively which was the industry group income gap, after that, summed all the gap (dispersion) of all of the industries with the reference object respectively which is the total income gap. In that way the specific value of the industry group income gap with the total income gap was just the contribution degree of the group to the total income. The reference objects were lowest income industry and average income industry respectively and the consequence of income gap contribution degree were the ceiling and floor respectively of administrative monopoly industries to all national industry. The results according to the first method showed that there was a large income gap between various industries in China and there were signs of expansion year after year. The contribution of11administrative monopoly industries group to the total gap was between18.38%-19.35%which was obviously higher than proper criterion.Theil index showed that it was mainly caused by intra-group and less of inter-group. The total Theil Index showed that the total income gap was enlarged firstly and then shrunkened. For the sake of contribution degree of inter-group gap, the Theil index of administrative monopoly industries was0.0425which was the biggest of the4group. It obviously meant that the administrative monopoly industries enlarged the gap with other groups.Thirdly, this thesis ascertained the quantitative relationship between the internal income gap of industries and various influencing factors through econometric analysis and took it as the quantity standards to evaluation that the internal income gap of industries was reasonable or not.The writer took samples from the annual report of listed companies and compared the internal income gap of representative administrative monopoly industries and competitive industries respectively as well as the gap between them. The result of internal income gap respectively was that the biggest inside income gap belonged to telecommunications industry that the income of executives was17.56times larger than its employees; then the second belonged to the banking industry with8.99times as well; the smallest was air transport industry with2.75times only; the growth rate of employees’ annual income was bigger than the executives’ nonetheless the total income of the employees’ of petroleum, electricity, banking and telecommunications industry was much less than their executives’ and in sharp contrast the growth rate of employees’ annual income in a low cardinal number of the two competitive industries was far below their executives’. Then the gap of inter-industry was that administrative monopoly industries had the absolute advantage than competitive industries whether it was between executives or between employees in the same level; the gap between different level executives’ and employees’ was especially shocking by the sight-the executives’ average income of banking industry was44.69times larger than the employees’ of transportation equipment manufacturing industry and68.39times larger than the textile industry, the same comparison of telecommunications industry was43.33and66.34times respectively and the comparison of railway transport industry being the lowest but also was5.34and8.62times respectively.We tested and verified that the conclusion stood by the tournament theory instead of behavioral theory and the Chow’s test found that administrative monopoly was the structural origin of the inner gap of inter-industry. At the same time the thesis found that the influence of return on total assets to the absolute income gap and the relative income gap was the biggest than all other factors. What was more important was that the type of industries affected the absolute income in a positive going way whereas in a negative-going way to the relative income gap which told us that the factor of administrative monopoly wound enlarge the absolute income gap while shrink the relative income gap.Besides, this thesis also clearly proposed that the reasonable reference objects that whether the industries income distribution of administrative monopoly was reasonable or not were those privately operated "listed companies" in competitive industries which was created by the market economy conditions and set up the rationalization standard to select such reference objects.Fourthly, this thesis found that the contribution degree of the non-wage income superiority of administrative monopoly industries was between36.34percent and38.78percent which made the same great influence on the existing and enlarging of income gap among industries with other factors. The degree of its impact on the non-wage income equation was about75%.From the year of2007to2012the non-wage income of typical administrative monopoly industries such as banking, air transportation, electricity, petroleum and natural gas and railway transport industries were8.28,7.06,5.20,4.36,4.20and2.49times higher than textile industry which was representative of the lowest income industry and were6.53,5.54,4.03,3.35,3.22and1.83times higher than transportation equipment manufacturing industry which was the representative of the average level income industry. Furthermore the ratio of the non-wage income to the total income in the administrative industries was much lager than that of competitive industries and it was higher than textile industry14.63,6.37,17.25,11.84,12.34and12.22percent and higher than transportation equipment manufacturing industry15.65,7.40,18.27,12.87,13.36and13.25percent. Such a gap was original from its extracting cardinal number firstly and from its extracting proportion secondly which resulted in the great total income gap between the two types of industries at last.The quantitative analysis proved that administrative monopoly was the root cause of the great non-wage income gap between the two types industries.Fifthly, this thesis tried to demarcate the rationalization of gap of income distribution between representative administrative industries and competitive industries and gives out quantized reference standard. The rationalization of gap between administrative industries and itself actual, transportation equipment manufacturing industry, textile industry and the41competitive industries was42.71、118.6、155.97and87.58percent respectively. The unreasonable gap between them was57.29,157.7,203.05and117.2percent respectively.This paper analyzed and summarized related research results of suitability for industry income gap made by related scholars at home and abroad, made use of micro panel data of China’s listed companies from41competitive industries and schemed out a suitable Mincer regression equation. And then, it got the income factor equation of competitive industries by which it calculated the "theoretical income" of administrative industries under the existing condition. Compared with themselves, transportation equipment manufacturing industry, textile industry and the41competitive industries, the results were that "theoretical income" of administrative industries should only be42.71percent of their actual income which meant that they got too much more income than they should; the specific value of the "theoretical income" to the actual income of transportation equipment manufacturing industry and textile industry should be1.19and1.56respectively but the specific values of the two types industries’actual income were2.76and3.59respectively which also meant that the administrative industries got much more than they should; the specific value of the "theoretical income" to the actual income of the41competitive industries was0.88but the specific value of the two types actual income was2.05which meant that the income of the administrative industries should be much less than the41competitive industries but the actual ratio was just the reverse. The contradiction highlighted greatly.