The Trade Income Gap Effects Of Trade Monopoly

Since1990’s, the study of trade income gap becomes richer, the existing study focuses on institutional factors especially the trade monopoly, while ignoring comprehensive analysis of the competitive factors such as human capital. As for this, this article will combine two kinds of factors on the trade income gap to form a relatively theoretical analysis, also, the empirical part will be based on individual factors such as human capital to treat trade monopoly as the breakthrough point to study the income distribution between industries, so this research has certain significance both theoretical and practical.This paper will use two-stage approach to explore trade monopoly’s influence on income distribution between industries. Since this method can take such individual factors such as human capital in to full consideration, we can estimate the effect of trade monopoly more accurately. Based on CHIPS micro individual data and economic census data in2008, after considering individual factors such as human capital, although trade monopoly’s influence on trade income gap will decrease, research results in this article show that trade monopoly does have great influence on trade income gap, and it is not, as a kind of relatively independent factor to affect trade income gap. Since human capital may be associated with employment opportunities into the monopolized industry, trade monopoly may be interacting with other factors such as human capital so as to affect the income gap between industries.Therefore, in the stage of the income distribution reform, especially in the reform of wage income pricing mechanism in monopoly industries, we should figure out how trade monopoly interacts with other factors such as human capital, then we can take steps to make the structure of human capital between industries more reasonable.