Empirical Research On The Influence Factors Of Industries Income Disparity

In recent years, along with the deepening of China’s reform and opening up and rapid development of the national economy, the level of employees’wages is constantly adjusted and improved. However, different industries have different level of development, the level of workers’wages also showed a greater difference, which causes the income gap between industries. There is no doubt that a reasonable income gap can be accepted by the public. However, the income gap is too large may cause a series of negative impact, for example, the balanced, healthy development of the industries, the concept of people’s careers, and the stability and harmony of social. Thus, to narrow the income gap of different industries, not only is an urgent requirement to solve the contradiction of income distribution, but also related to the construction of a harmonious society, the full realization of a well-off society and so on.This paper mainly uses the method of quantitative analysis and comparative studies, and chooses the financial industry and the manufacturing industry to discuss the influence factors of income gap. Based on the actual situation of China, this paper takes industry income gap as the starting point, and uses extreme difference, extreme value ratio, maximum, minimum value, standard deviation, kurtosis, skewness, and Theil index to do the descriptive statistical analysis. The data comes from the "China statistical yearbook" and "China labor statistics yearbook". The result of the descriptive statistical analysis shows that the income gap between different industries has the trend of widening gradually. Then, this paper takes the manufacturing and financial industry as an example, and uses panel data model to discuss the main factors which influence the industries’ income gap. The final research conclusion shows that human capital, industry labor level and monopolistic level are important factors to influence the industries’ income gap.According to the conclusion of the descriptive statistical analysis and panel data model, this paper gives the suggestions and countermeasures which can be used to narrow the income gap between industries. Firstly, improve the level of human capital. That is, to improve per capita educational opportunities, strengthen the investment of job training and adult vocational education, optimize the effective allocation of human capital in the industry and optimize the effective allocation of human capital between industries. Secondly, strengthen the regulation of the monopoly industries. This paper argues that to implement and improve the system of wage guidelines, to accelerate the development and introduction of the "Enterprise Wage Ordinance, to break the industry monopoly are good measures to regulate the income gap between industries. Lastly, narrow the differences in labor productivity of the industries. This recommendation mainly includes two aspects:on the one hand, to raise the labor productivity of the industries; on the other hand, to strengthen the support of national policy. In short, dealing with the problem of the income gap is a comprehensive work.Compared with the previous studies, the innovation of this paper lies in the following two aspects. The one hand, this paper analyzes the important factors which affect the income gap between the industries from various angles and aspects. Throughout the domestic scholars’research, it can be found that the income gap of industry research focus mainly on qualitative analysis level, and they choose different factors. Based on the human capital theory, the efficiency wage theory, system theory, this paper chooses the human capital, labor productivity, industry monopoly as the main research variables. In addition, this paper uses the panel data model to analyze these three factors how to affect the income gap between different industries. On the other hand, the paper takes the financial industry and manufacturing industry as an example because they are the typical and representative industries. From previous scholars’ research, we can find that almost no scholars choose two or several industries to study the factors which cause income gap between different industries. This paper selects the manufacturing industry and financial industry to do research, the main reason is that these two industries has big income gap. In the long run, the manufacturing industry has a low level of income, and the financial industry has a high level of income. In addition, the financial industry and the manufacturing industry is related to the development of national economy, and their degree of monopoly also has the obvious difference.