An Analysis Of The Relationship Between Industrial Monopolies And Income Gapr: Based On The Decomposition Of Gini Index

Since reform and opening up, China’s economy has grown at a rapid speed. People’sliving standards greatly improved, but at the same time，the problem of income gap arealso beginning to loom large，especially after2000. The Gini Index has been above0.4cordon, the income gap problem increasingly causes the attention of the people. For theproblem, scholars put forward their own point of view. According to the literature researchof scholars, theirs mostly concentrated in the urban and rural income gap found2000yearsago. After2000, the industry income gap is grasping more and more scholars’ attention,and a lot of research means that industry is the main factor of income gap, but thequantitative analysis of the trade gap between the extent to which affects income gap isrelatively rare.This paper based on Gini Index Decomposition Model of industry, studys the causesof the persistent high alert area residents of Gini Index, seeking policy suggestions to solveresidents income gap.Firstly, this paper analyses the current status of industry income gap, selects theappropriate standard of monopoly industries and the appropriate index system to accuratelymeasure industry between Gini Index and Gini Index in the industry. Secondly, through thedecomposition of Gini Index decomposition method discussed before, then explain that thehigh income of monopoly industries and the industry’s Gini Index were the main reasons tomake the overall Gini Index, concluding that the high end of monopoly industries relyingon its monopoly position not only harm the people’s right to equal opportunity andexpanded the income gap of residents, but also constitutes the social equilibrium andstable development. Lastly, income gap of residents in cracking policy focus should be tostrengthen market competition mechanism, to break monopoly industry, to ensure thatresidents’ rights to achieve equality of opportunity.