Rational Study On The Income Of Monopoly Industries In China

Since the implement of the reform and opening-up policy which allowed some people to get rich first, the income level of residents in China has improved greatly. But the problem of income gap followed. Excessive income gap can not only affect the spread and quality of the economy,but lead to social unrest. The regional income gap and the income gap between urban and rural areas has caused general attention, the industry income gap now capture more and more attention. This text used extreme ratio, extreme difference, mean value ratio, mean value difference, the Tell index and the Gini index to analysis the typical monopoly industries and competitive industry income gap, the result showed that after the proposed price index changes, The absolute income gap between industries is growing while Relative income gap between industries have increased first and then decreased.Monopoly industries has far higher extra-wage income level than the competitive industry, This paper quantifies the extra-wage income of the selected industry income, it showed that the Teil index of the extra-wage income is 3.6 times of that using he income without the extra-wage income,the Gini index of extra-wage income is 0.4576,which is far higher than that using he income without the extra-wage income. It showed that using the average wage that measure the inter industry income gap seriously underestimated the real state of the industry income gap.In the part of empirical research, Fei-Ranis Model is used to measure the degree of these factors’influence. It showed that monopoly is the most important element that contributes the income gap while different levels of education is the secondary, the difference of average assert and foreign investment can also lead to the income gap but has little influence. Cotton model is used to divide the gap into three parts: rational part accounts for 30.07%, the higher part of administrative monopoly industries accounts for 57.92%, the lower part of the competitive industries accounts for 12.01%.Finally, this paper expands the Cotton model to analysis the rational pay. It shows that the income of Air Transportation is the most unresonable of all seleced industries.