Chinese Industry Income Gap

With the continuous deepening of reform and opening up and economic growth increased substantially, the widening income gap presents in China. Statistics from World Bank show that China's Gini coefficient has been over 0.4 point of the international warning line in 2007. China has been a country with a large income gap. Such excessive income gap runs counter to the goal of building a harmonious society in China, which has attracted nationwide attention, and affects the concept of people's careers, social values and social stability. Therefore, a reasonable control of the social income gap has great significance for the construction of the country's "harmonious society"The country's income gap is mainly reflected in three aspects. They are rural-urban income gap, regional income gap, and professions and trades income gap. There are much studies for the rural-urban income gap and regional income gap, but for most of the studies to the income gap between different industries remain in the analysis of the phenomenon, instead less study for the income gap over the trajectory for the industry, widening gap between the theoretical and empirical analysis of the reasons. Therefore, this paper chooses "professions and trades income gap" as the object of study, by analyzing the trajectory of Chinese industry's changes in income gap to find the characteristics and problems from the gap and its changes; from the perspective of theoretical and empirical to study reasons for Chinese widening income gap; and concerning the influence factors of gap change to put forward policies and recommendations.This paper bases on using the study achievements of the trade income gap from the scholars of home and abroad for reference, choosing the theory of monopoly, wage theory, human capital theory, labor market theory, and institutional theory as the theoretical support to study the income gap between the Chinese industry from the following aspects of:First of all, it starts from the analysis of the tracks and changes in Chinese industry income gap, and then selects the sub-sectors of 1978-2008 average wage income as the analysis of indicators so as to compare extreme difference, extreme ratio, standard deviation, the Engel coefficient and Thailand Seoul Index of various professions and trades income gap, and last produces the characteristics of the changes in the trade income gap:(1) The average wages of workers have been on the rise in all trades; (2) The income gap of the average wage continues to widen in all trades; (3) The workers average wages in high, their status has greater changes in every trade; (4) The workers'average wage growth tilts organs and units, and the state-owned economic units; (5) Corruption leads to the industry income disparities.Second, combine with the characteristics of the trade changes of the income gap, from qualitative and quantitative aspects of Chinese industries to find reasons for the widening income gap.The influence factors of the qualitative analysis including:structure of industry elements, industry level of the human capital, market structure of the industry, industry labor productivity, economic growth and development, wage system reform, industry differences and industrial structure adjustment, and economic system reform. To make a convincing for the causes of theoretical analysis, this paper selects the most representative trade monopoly, industry labor productivity and industry level of human capital to do regression analysis, and concludes the level of human capital in industry affecting the trade income gap mostly. Third, on the basis of the analysis of the characteristics and causes of the industry income gap, from the perspective of sources of income to judge the rationality of the income gap of Chinese industry at this stage:the level of human capital, labor productivity gap between the formation of such factors is reasonable; monopoly elements, and illegal income led to the industry income gap is unreasonable. Finally, according to the main reason for the widening income gap between industries, from the role of market mechanism into full play, we break business monopolies and introduce competition. We continue to increase investment in education and improve the quality of workers, and thus we enhance the industry labor productivity, and transfor economic growth, and accelerate economic development, and promote the optimization, and optimize the industrial structure; and improve income distribution, laws and regulations to form of an effective legal environment, and improve the angle of the income distribution system for the reasonable control of the income gap between the industry and finally put forward policies and measures.Through this study, it will become more clear for the Chinese characteristics of the changes in income gap between of the industry. It will become more targeted for the causes of the gap. It will become more operational for the policy recommendations.This paper provides more valuable decision making for the reasonable control of the income gap between the industry, and for promoting the coordinated development of various trades and sectors, and for achieving common prosperity goals, and for maintaining sound and fast economic development.