Research On Distribution Of State-owned Monopoly Industries’Income And Its Effects

The reform of income distribution is an important content of China’s economic system reform, an important manifestation of economic development and social progress, an important guarantee of the construction of harmonious society. With the rapid development of market economy, various sectors of society are steadily improving their level of income. While, the widening income gap has become a focus of attention of the community and need to be solved as quickly as possible, particularly the large income gap between different industries. This article discusses the problems of income distribution in state-owned monopoly industries and particularly analyses the problems in the structure of factor income distribution; we compare the contribution and return of the factor inputs, discuss the occupation of labor over capital and the extent of loss of the country as the owner of capital. Then to estimate the reasonable interval of the proportion that different monopoly industries should turn over to government, to discuss the effect of different proportions of the bonus, how much it can impact the income gap and the enhancement of universal welfare. Finally, it provides the theoretical basis and suggestions for the government to develop the reform policy and the reform of the system of income distribution in monopoly industries.This article is divided into five chapters were discussed. The first chapter, introduces the topics in general background and significance, literature review, research methods and innovations; The second chapter discusses the characteristics, the trends of reform, the responsibility, the structure of income distribution and the proportion of profits paid to government about monopoly industries. The third chapter analyzes the extent of occupation about labor and capital by mathematical model, it is expected that labor occupy capital in monopoly industries and it is just the opposite in competitive industries; and reveal the irrationality of our distribution structure. The fourth chapter analyzes the effects of distribution structure about the state-owned monopoly industries, the gap of income; and discusses how will different distribution structures affect income gap, while estimates welfare losses caused by monopoly and analyzes the effects of improving the proportion paid to our government on medical or education. The last chapter is conclusion and countermeasure; it will summarize the article and give our suggestions.