Correlation Between Administrative Monopoly And Inter-industry Income Gap In China

Since the reform and opening up, with the continuous reform and further implementation of the government policies to enrich Chinese income level, the living standard has been greatly improved. However, economic and social development of China has entered a "golden period of development, highlighted contradictions period," especially the widening gap among various industries has become increasingly prominent social contradictions. Whether the contradictions are handled properly or not is related to the success of reform, the harmony of the society.It is generally admitted that income gap among various industries is not only related to technical level, human capital content, capital labor ratio, but also related to the degree of administrative monopoly. We find that administrative monopoly industries can cause greater income disparity by monopoly profit, owner vacancy, labor market segmentation. This thesis is to recover this transmission mechanism between administrative monopoly and income gap among various industries. Besides, this thesis aims to do some empirical analysis between administrative monopoly and income disparity and get the relationship between them. Last but not the least, we get some conclusions of how to reduce the income gap mentioned above.This thesis contains five parts—introduction, theoretical analysis, experiential analysis, advice and conclusion. In the part of introduction (Chapter 1), the issue to study has been put forward, concerned concepts have been defined, innovations and study methods have been interpreted briefly. In the part of theoretical analysis (including Chapter 2, Chapter 3 and Chapter 4), relative literature and basis of the study including foreign studies and domestic studies are reviewed(Chapter 2). Then, the thesis carries on an analysis on the status of inter-industry income disparity. (Chapter 3), then comes the standardize analysis between administrative monopoly and income disparity(Chapter 4). At the same time, the rationality of the impacts on income gaps because of administrative monopoly and the transmission mechanism between administrative monopoly and income gap among various industries are the main contens of this chapter. In the part of experiential analysis (Chapter 5), taking the transmission mechanism as our theoretical fundamental, using panel data model, the thesis carries on an experiential study on the correlation between average reward, productivity, capital stock per capita, feminine proportion, and the degree of administrative monopoly in China. Results show that there is a significant correlation between administrative monopoly and average reward(Chapter 6). on the bases of theoretical and experiential analysis, advice and suggestions on how to narrow the income gaps among various industries and on how to diminish the administrative monopoly have been brought forward. In the last part (Conclusion), the thesis has summarized the main content and results of this research, and has pointed out the deficiency of the study.