Study On High Income And Regulation Measures Of State Owned Monopoly Industries In China

Since the Reform and Opening, China has a rapid economic development, living standards and quality of the rapid increases. However, China’s income gap has become widening. Although the central government has introduced a series of policies to promote income distribution system reform, but the gap still exists, the income distribution reform is imperative. The high-wage, high welfare, high-income issue of the state-owned monopoly industries attract everyone’s attention. In the process of the reform, the distribution of income that workers of state-owned monopoly industries is higher than the general competitive industries has reached a consensus, but the modest income distribution between monopoly industries and competitive industries is particularly important. This provides a theoretical support and scientific basis for the reform of income distribution, affects the development of the reform of income distribution and the prospect of the state economy. Based on the research on the theory of distribution according to work, this paper uses the method of summary, to analyse the new features and countermeasures under the conditions of the socialist market.The paper is based on the theories of distribution according to work and factors. According to the rule of the theory of distribution according to work, the worker’s personal ability and quality differences will cause differences in the distribution of income, following providing the quantity and quality of labor allocation remuneration after the social deduction. According to the rule of the theory of distribution according to factors, the various elements of production factors in accordance with the owner’s contribution to creating products participate in the distribution of state-owned economic use of state resources, the state capital, should be rewarded according to contribution. It should be used as part of the state treasury bonus from the monopoly; higher quality workers from monopolies general competitive part of the industry should be left to employees as remuneration.I use Oaxaca-Blinder decomposition method to get the results that the income of workers of state-owned monopolies is higher than ones of general competitive industry. It gets empirical analysis of state-owned monopolies moderate income distribution, combined with realistic data. And in accordance with the conclusions of the above studies combined with theoretical analysis,I put forward specific measures and suggestions.This paper has three innovations:the first concerns the innovation of the distribution theory according to work. Max pointed that, it should get social deduction before the distribution, which was based on the prevailing economic and social development needs. Marx envisaged distribution according to work was a society under a single ownership to the entire community into a unified allocation unit, so there was no coexistence of different forms of ownership and the income gap between different industries. So this paper has an innovative distribution according to work, based on the new conditions. This innovation is that, not only to meet the prevailing economic and social development needs, but also consider social equity and the balance of the industry revenue problem, after the social deduction. Second, monopoly has an influence on income distribution. The profit should be turned over to the country. The state enterprise workers’ distribution should be according to the ones with other industries. Third, this paper not only takes into account the quality of individual workers, but also considers business operations and financial conditions where employees work.