| Since China's accession to the World Trade Organization(WTO)in2001,the level of China's opening to the outside world has been constantly improved,and the scale of foreign investment has also been expanding.Foreign investment can not only provide a large number of employment opportunities and bring advanced production technology and management experience,but also form a transnational production cooperation network and expand the scale of market demand for products.These functions can expand the scale of our labor market demand,and thus improve the wage level of workers.But the skill levels of workers is differentiated,endowment characteristics,such as different workers on foreign investment in the form of jobs and skills ability to adapt differences,different ownership enterprises and professional categories of workers affected by foreign investment also has a bigger difference,foreign investment in the past more than ten years in our country is the distribution of regional and industry bigger change happened.Therefore,the influence of foreign capital entry on the wage income of laborers with different endowment characteristics in China may vary greatly,and foreign capital entry thus becomes an important factor shaping and affecting the income inequality in China.Therefore,it is necessary to conduct in-depth research on this.This is not only helpful for us to deeply understand the influence degree and mechanism of foreign capital entry on China's productivity level and income distribution,but also can provide policy inspiration for our country to summarize and sort out the "policy dividend" of opening to the outside world and the possible negative impact.In this context,this paper,with the title of "Foreign capital entry and income gap",combines theoretical analysis and empirical test to explore the degree and possible mechanism of the influence of foreign capital entry on the skill wage gap,gender wage gap and urban-rural income gap in China.The thesis mainly demonstrates from the following six aspects: question proposal,theoretical basis,current situation description,theoretical analysis,empirical test and conclusion suggestion.The first part is the question,covering the content of Chapter 1.This part mainly discusses the research background and significance of foreign capital entry and income gap.To sort out and comment on relevant domestic and foreign literatures on foreign capital entry and income gap;The research framework,ideas and methods of this paper are expounded.Summarize the innovation and deficiency of this paper.The second part is the theoretical basis,covering the content of Chapter 2.The theoretical basis of this paper is absolute advantage theory,comparative advantage theory,Heckscher-Ohlin theory,Mincer theory of human capital and labor market discrimination theory.Absolute advantage and comparative advantage are conducive to the overall income of trading countries to promote the growth of personal income.Heckscher-Ohlin theory is helpful to clarify the related issues of skill wage gap,while Mincer's human capital theory simulates the relationship among income,school education and experience empirically,which is helpful to analyze the related issues of income distribution.The theories of labor market discrimination include endogenous discrimination and exogenous discrimination.They show that the discrimination may come from inside and outside the labor market,while the entry of foreign capital will affect the discrimination status of the labor market and can affect the income gap through labor market discrimination.The third part describes the current situation and covers the content of Chapter3.This part mainly carries on the descriptive analysis to our country foreign capital entry and the income gap,simultaneously also makes the brief comparison with the world main developed country and the main emerging market country.The study found that manufacturing industry has been the most foreign investment into the industry,the eastern coastal areas are the most foreign investment into the region.The income level of eastern China differs greatly from that of other regions.The income level of eastern China is high,while the Gini coefficient of western China is relatively high.The income gap between urban and rural areas is also large,and the income in rural areas is generally low.Compared with other countries,China's overall income level is low and the gap with developed countries is large.Compared with developed countries,China's Gini coefficient is at a high level,while compared with other emerging market countries,it is at a medium level.The fourth part is theoretical analysis,covering the content of Chapter 4.This part discusses the impact of foreign capital entry on income gap from the perspective of macro theoretical model,mainly to build a theoretical model framework and discuss the impact of foreign capital entry on income gap under three circumstances.The analysis shows that under the condition that the low human capital group cannot become the high human capital group and cannot exchange products with the high human capital group,there is a positive correlation between foreign capital entry and income gap.In the low human capital population can make products with high human capital exchange situation and low human capital of population can be changed into the high human capital situation,foreign investment and the gap of income between the positive and negative correlation depends on the low initial relative levels of human capital,human capital if low initial human capital,human capital relatively high levels of foreign investment and will present the positive correlation between the income gap,if the initial human capital relatively low human capital level is low,foreign investment and the income gap between will present negative correlation,when low human capital crowd after reaching a certain level of human capital,There will be a positive correlation between foreign capital entry and income gap.In addition,empirical results of provincial panel measurement also show that more foreign investment will have a positive impact on the local Gini coefficient,that is,the income gap will be larger.The fifth part is empirical test,covering the content of Chapter 5-7.This part mainly adopts micro-survey data and data from prefectural city level to empirically test the impact of foreign capital entry on three major aspects of income gap,namely skill wage gap,gender wage gap and urban-rural income gap,in order to form a deeper understanding of the mechanism of foreign capital entry's impact on income gap.The results show that :(1)the entry of foreign capital expands the skill wage gap,but the expanding effect gradually declines.The entry of foreign capital can significantly improve the wage income of Chinese workers,and the estimated coefficient value obtained by using the instrumental variable is larger,but this promoting effect shows a trend of first expanding(2002-2007)and then shrinking(2007-2013).The entry of foreign capital has widened the skill wage gap between high-and low-skilled workers,but the expanding effect shows a trend of narrowing gradually.Highly skilled workers working in the private sector,as well as technicians,business service workers and unskilled workers,have benefited more from foreign investment,which may be the main reason why foreign capital entry has widened the skills wage gap.(2)The entry of foreign capital widens the gender wage gap,but it has an inconsistent impact on workers with different skills and job characteristics.The influence of foreign capital entry on the income of male workers is greater than that of female workers,which enlarges the gender wage gap in China to some extent.However,from 2002 to 2013,the influence of foreign capital entry on gender wage gap showed a gradual downward trend.From the perspective of skills,the impact of foreign capital entry on the income gap between men and women with the same skills has been gradually reduced,and highly skilled women may even benefit more than highly skilled men.By job characteristics,men working in party and government offices or in the private sector,as well as those in charge and unskilled workers,are more likely to benefit from foreign investment than women.(3)Foreign capital entry has widened the income gap between urban and rural areas,but its impact on different regions is different.Nationally,foreign investment will significantly widen the income gap between urban and rural areas.To be specific,the impact of foreign capital entry on the urban-rural income gap in the eastern and central regions is not significant,but it will significantly expand the urban-rural income gap in the western regions.The income gap between urban and rural areas is spatially correlated.After considering this factor,the influence coefficient of foreign capital entry on the income gap between urban and rural areas will be further improved.Foreign capital entry in the surrounding areas helps to narrow the income gap between urban and rural areas in the region.The sixth part is divided into concluding recommendations covering the content of Chapter 8.This part summarizes the main research conclusions of the paper,on this basis,puts forward targeted policy inspiration,and prospects for further research direction in the future.Based on the above research,the possible innovations of this paper are as follows:First,this paper draws on Basu & Guariglia(2007)and Lim & Mcneis(2014)theoretical model,the theoretical model is extended to more general form,the main difference is that one is considered the people by the education level and actually get there may be some differences of human capital,this article does not equates the level of education and human capital completely,but see them as two highly correlated variables;Secondly,the individual utility function of industrial products is extended from the linear function to the more commonly used nonlinear utility function,so as to investigate the influence of foreign capital entry on the income gap in different situations by affecting the inequality of human capital.Second,we estimate the dynamic process of the influence of foreign capital entry on the skill wage gap and its causes.Most of the existing studies only use oneyear data to analyze the impact of foreign capital entry on the skill wage gap,which is likely to change dynamically with the change of domestic development stage,and the specific impact mechanism has not been empirically tested.Using the data from2002 to 2013,this paper finds that foreign capital has widened the skill wage gap between high-skilled and low-skilled workers,but this widening effect shows a trend of gradual narrowing.Highly skilled workers working in private enterprises benefit more from the entry of foreign capital,and unit heads and staff also benefit more,thus revealing the stage characteristics of foreign capital entry affecting the skill wage gap,and investigating its influence mechanism from the perspective of the characteristics of workers' work,enriching the existing research.Thirdly,it reveals the dynamic process and mechanism of the influence of foreign capital entry on gender wage gap.The existing literature seldom analyzes the influence of foreign capital entry on gender wage gap,and does not put forward specific influence mechanism.This paper attempts to make a detailed analysis and finds that foreign capital entry will widen the gender wage gap,but its impact on the gender wage gap shows a gradual downward trend during 2012-2013.In addition,from the point of view of skill level,unit nature and occupation category,foreign capital entry is mainly to expand the gender wage gap of low-skilled workers,party and government organs and private units,as well as unit heads and unskilled workers.This enriches the understanding of the influence of gender wage gap on the dynamic process and group characteristics,and complements the relevant research in this field.Fourthly,the regional heterogeneity and spatial correlation of the influence of foreign capital entry on urban-rural income gap are analyzed.Most of the existing studies use provincial panel data when analyzing the impact of foreign capital entry on urban-rural income gap,and there may be a serious problem of missing variables,which makes it difficult to reflect the characteristic differences among different regions.Moreover,the spatial correlation between foreign capital entry and urbanrural income gap is not considered,which reduces the reliability of the model estimation results.Prefecture level panel data on this paper,which can better control the regional heterogeneity and spatial correlation of the influence of foreign capital entry on urban-rural income gap,and analyze the influence of foreign capital entry on urban-rural income gap in the whole country as well as in the eastern,central and western regions,so as to more accurately and completely reveal the characteristics of the influence of foreign capital entry on urban-rural income gap. |
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