Cause Analysis And Government Regulation On China's Income Gap Of Different Industries

Since the reform and opening up, following the steady development of China's Economy and the establishment and perfection of socialist market economy, people's living standard has been improved accompanied by the dramatic raise of their income. At the same time, however, the income gap has also enlarged. The World Bank's statistical data has shown that China's Gini coefficient has exceeded internationally recognized warning line of 0.4 and China has become a country in which the income gap turns to be very large. The facts show that continuous widening of income gap, as well as the unreasonable state of affairs that exist in income distribution have on one hand become one great important reason why people dissatisfied with the current economic situation, and brings negative effects to our country's economic development on the other hand. Therefore, the problem of income distribution has turned to be an academic focus.The income distribution gap is mainly revealed in the continuous increase in fields of urban-rural, different regions and different industries income gaps. Especially in resent years, the income difference among different industries has widened and gets more and more notably, which has become a severely social problem. Although the difference in the field of income distribution during every country's development process is inevitable, if the "gap" is too large, it will not be conductive to arouse the enthusiasm of each respect. That is, a small number of people get rich quick while the majority of low-income earners get slow or even negative growth in income, which could lead to social discontent and even social contradictions and eventually affect the formal economic development. Therefore, it is necessary to get the "income gap" under control. In this paper, "China's income gap between different industries" is chosen as the study main line. Under the directions of Marxism and the Primary West Economics Theory, based on the practical situation of China and resent years' data, this paper defines the value judgment standard of income distribution between different industries, finds out the reasonable and unreasonable aspects in income distribution, discusses the reasons of industries income difference systematically. The main reason that causes the expansion of income gap is "monopoly", especially "administrative monopoly". However, compared with data analysis five years ago, the influence of "monopoly" has weakened, so reasons should be found from other respects such as China's specificity during transition, industry structure differences, industrial upgrading and human capital. And target-oriented policy recommendations can be given properly.This article is divided into five parts: The first chapter introduces research results of current mainstream economics; through analysis and comparison of a series of data, the conclusion of "income gap between different industries is still very large" is made, and trend prediction is made on the basis of Kuznets's "inverted U" theory in Chapter two; reasonable value judgments has been made in Chapter three; specific analysis of the reasons why the income gap between different industries in China has been so obvious is made in the fourth chapter; corresponding policy recommendations are given in Chapterfive.