The Impact Of The Monopoly Degree Of The State-owned Enterprises On The Wage Differences Among Industries

At present, the gap of the wages among various industries is becoming increasingly widened, showing completely different characteristics with the planned economy period in China.This thesis studies the effect of the degree of ownership monopoly to the industry wage differences. Based on the process of wage formation of the state-owned industries and non-state-owned ones, the study found that different ownership in the industry has different ways in the wages determination. Basically, the wage of the state-owned industry, regardless of the planned economy period or after the reform is interfered by the government; Instead of that, the non-state-owned industries are few interfered by the government after the reform, and their wages are determined by the market competition. Therefore, this situation has led to the wage level of the state-owned industries is higher than the non-state-owned ones.On the basis of the profit share theory, this thesis uses the co-operative enterprise model and analyzes the state-owned monopoly lead to the wage differences among different industries in theory. Firstly, the monopoly position of the state-owned industries let them have the possibility to earn higher monopoly profit. But it is not necessary that the monopoly position and monopoly profit can bring the higher wages, except that the profit can be shared by the workers in the industry. Then the average level of the wages in this industry can be higher than others. At last, that leads to the wage differences among different industries.By the empirical analysis, this thesis, regarding the electric industry as the representative which has a higher monopoly degree, and using the longitudinal data of 1990-2005, tests that the theory of profit share exists in China. So it ensured the correction of the theory analysis. In order to test the impact of the state-owned monopoly to the wage differences among different industries, this thesis uses the intermix crossing data of 2002-2005 and does the test. The result demonstrates the state-owned monopoly is one of the factors which can lead to the differential.Above all, the level of the wages in state-owned industries, such as electricity, is really higher than in non-state-owned ones. So the impact of the state-owned monopoly to the wage differences still should not be overlooked. This is the reasons in recent years the government and residents concern to the high wage level in monopoly industries.The last part of this thesis studies the reasons of the high wage level in the state-owned monopoly industries, and brings out related proposals, including establishing an independent, fair and impartial regulation; dividing the monopoly industries reasonably; formulating the anti-monopoly laws and regulations; developing the labor market and establishing a modern enterprise wage system.