The Research On The Income Distribution Gaps Of State-owned Enterprises

Income distribution matters the life of tens of thousands of people, it’s always aconcern across different groups of people. According to State Statistical Bureau, in2013, China’s Gene Index, a method describing degree of Income distribution, got to0.473, which is in a relatively high level contrasting to international standard. Tosome extent, Income distribution differentials right now is the result of the Reformand Opening, but there has some cases which is not reasonable or fair, such as incomedifferentials caused by State-owned Enterprises, which is just the focus of this article.The structure of this article is as follows: First, after literature review andinvestigation on history of SOE’s institutional change&income distribution, we focuson income disparities referring to SOEs, which is divided into two parts, one is focuson earning disparities between SOEs and private enterprises, the other pays attentionto gaining gaps between managers and ordinary staffs in SOEs. Second, through casestudy and Oaxaca-Blinder decomposition, we find, it’s unreasonable that the earningsin SOEs is much higher than that in private counterparts. In other words, there hasdiscrimination effect from SOEs to private enterprises. Last, we explain income gapscaused by SOEs from the perspective of property rights.