The Analysis Of The Influence Factors Of Income Gap In The Industry In China

Since the reform and opening-up, the market economy of our Country obtains along-term development, and so does the scale of our industry’s production. As a result,the average wage of our practitioners raises high than before. We do achieveremarkable results in economy. However, with the development of our country’seconomy, the average income imbalance problem between industries is increasinglyoutstanding, and it attracts wide attention from all the society. The gap betweenindustries’ income not only aggravates the income gap of residents in our country, butalso hinders our economy’s long-term and healthy development, and even, it causeinterferences industrial structure upgrading in China. Therefore, it becomes one of hottopics in the present research to study the influence factors of industry income gap,and try to suit the remedy to the case in order to narrow the income gap in the industryin China.To the problem of income gap and its influencing factors of industry in ourcountry, domestic and foreign scholars have done a lot of exploration, and achievedrich research achievements, and provided valuable ideas to the later researchers. Yetthe existing research literatures are worthy of breakthrough both from theoretical andempirical analysis method. Based on the predecessors’ research, this paper improvesresearch methods, explores the more comprehensive and scientific research train ofthought, puts forward more systematic indexes of influence, in order to make morereasonable explanation about the industry’s income, narrowing of the income gap inthe industry in China and put forward some policy suggestions. Firstly, this paperintroduces related theories of the industry income gap, sets up the theoreticalfoundation and mutuality thinking and perspectives. Then, respectively using datafrom a single year and many years, this paper analyzes the present situation anddevelopment trend of industry income gap of our country, by adapting indexes such asextremism point’s trend Angle ratio and the Gini coefficient index measure. On thisbasis, referring to predecessors’ research results, using the panel data from2003to2011divisions income, the paper adapts principal component analysis (pca) to pickout the heavy interpretation of the nine variables to objectively synthetic threeindicators of regression calculation to explain industry income gap of our countryindustry income gap. Finally on the basis of theoretical research and empirical analysis, this paper puts forward some policy suggestions about narrowing the incomegap in the industry in China.