Empirical Analysis And Mechanism Study On The Influence Of Administrative Monopoly On Professional Income Gap In China

The large professional income gap has become the big concern of the society, especially the high-income in monopoly industries, has become the important reason of the widening gap between rich and poor. Using theoretical analysis and empirical analysis, qualitative analysis and quantitative analysis methods to do theoretical research and empirical test on the relationship between professional income gap and administrative monopoly, then further analyzes the real influence degree, which has important practical significance.Administrative monopoly is that government departments, government authorities or other government sector restrict, exclude the normal competitive activity, impede the normal operation of the market using their executive privilege, which is a government intervention in the economy Forms. The high-income of monopoly industries in China mainly concentrated in the administrative monopoly areas, such as electricity, oil, finance and other related fields. From the general sense, the pure natural monopoly does not belong to the scope of administrative monopoly. Since 1970s, 80s, the innovation of information technology and the reform of enterprise system had a great impact on the traditional natural monopoly sectors, which urged the natural monopoly in developed countries to introduce competition mechanism; but in China, as the unique traditional economic systems, a large number of administrative monopoly industries appeared, and this is precisely where the characteristics of administrative monopoly in China.The major reason of the widening professional income gap is administrative monopoly, the income gap between administrative monopoly industries and non-administrative monopoly industry firstly show in wage, through the 1990-2009 year statistics shows that the gap is in the level of 2 times; but given the existence of hidden income, the actual gap will be greater,. According to Wang Xiaolu's research, the monopoly of industry and non-Monopoly industries can be divided into five levels from the low-income to the highest income, then estimated the correction factor after adding hidden income, and further estimate d the implicit income. Compared to the average wage level, the implicit income of monopoly industries is 3 to 5 times higher than that of non- monopoly industries. The influence of administrative monopoly on the professional income gap is about 65 % by Theil index estimated data.The main mechanisms between the professional income gap and administrative monopoly show in four areas; that are the high monopoly profits caused by monopoly price, the restrict movement of the labor market segmentation and different wage determination mechanism, rent-seeking behavior and failure of government regulation. From now on, the government and relevant departments should reform the administrative monopoly industries from reforming the monopoly price, promoting the free flow of labor markets, restricting rent-seeking behavior and optimizing the government regulation and other aspects.