Research On Income Gap Between Different Groups From The Perspective Of Power

Since the reform and opening up, the social productive forces have been developing rapidly and the production relations have undergone tremendous changes. The emergence of the labor, capital, intellectual and management groups which are the owners of production factors had changed the simple class structure. With the deepening of socialist market economic system reform and the establishing of distribution according to contribution of production factors, the income gap between different groups haven’t shrink, but there has been a growing trend. This paper analyzes the China Health and Nutrition Survey (CHNS) and find that the labor group’s income are very low and its growth is very slow, capital group’s income is much higher than labor group. With the development of economic and the increasing demand for management and technology personnel, the income of management group and intellectual group are growing rapidly, which is expanding the income gap between different groups. The income gap between groups of production factors has become a major source of China’s income gap.The traditional research of income gap’s factors focused on market mechanisms, monopoly, human capital, etc. The impact of the power on the income gap between groups hasn’t received sufficient attention, but in fact the power is an important factor of income distribution. Therefore, this paper will take labor, capital, intellectual and management groups as the object of the research, and discussion the problem of expanding income gap between groups under the influence of power. This paper will classify the power as administrative power and economic power depending on the mode of action, and illustrate how the power to influence and expand the income gap between groups from the perspectives of macro market and micro enterprises.In terms of researching the impact of administrative power on the income gap between groups, this paper argues that the free competition and factor endowments’ differences will lead to a relatively reasonable income gap between groups in the market. Standardized intervention of administrative power can narrow the income gap caused by market factors. But if standardization intervention of power alienated to unregulated intervention of power, it will undermine the principle of equal opportunities and fair competition in the market economy and lead to further expanding of income gap between groups. This paper finds that the unregulated intervention of power has made the degree of labor factor price distortion increase by regression analysis. That’s the reason why the share of labor income is reducing and the income gap between groups is expanding.In terms of researching the impact of economic power on the income gap between groups, this paper will classify the four groups as physical capital (capital), special human capital (management and intellectual) and general human capital (labor) groups and analyzes the structure of distribution and the sources of power between different groups in the enterprise based on the enterprise theory. This paper proves that the economic power will determine the distribution structure of corporate surplus between physical capital and human capital by building cooperative game model. Finally, we will calculate the part of income gap explained by economic power in the human capital group (special human capital group and general human capital group) by the method of regression analysis and distance resolving.