Research On Labor Market Segmentation,Income Distribution And The Relationship Between Them

Income distribution has been social problem currently in China. Since China’s reform and opening up, with the rapid economic growth, the income distribution gap of residents in our country has been widened and it has become an important bottleneck in China’s economic and social development. The research about income distribution gap is widening comes earlier at home and abroad, there are two main theories:first one is human capital theory which is based on the assumption of new classical economics, it proposes that people who have more human capital (education, skills and experience, etc.) can get a higher salary that adjusts the whole balance of labor market; The other is labor market segmentation theory, it criticizes the theory of human capital about the assumption of perfectly competitive labor market, and emphasizes the income decisive effect of different labor market structure.In this paper, on the basis of research achievement at home and abroad, and according to the actual situation of our country, there are analysis confirmed that along with the deep reform of economic system, income accounts for the proportion of its general income is higher and higher. Then we should pay attention to the type of labor market’s impact on wage income distribution gap if we want to explore the reason why the income distribution gap has widened. As a prominent phenomenon in the process of urbanization in our country, the main form of labor market segmentation is urban and rural division, regional division, and industrial division. Therefore, in this paper, with the help of related theories and literature review, on the basis of research achievements about labor segmentation in our country, analyzes on the current situation and the causes of income distribution gap and labor market segmentation in our country, and further to studies the relationship between China’s labor market segmentation and the residents’income distribution gap, which has important theoretical and practical significance for solving the problems of income distribution gap, the present situation and problems of labor market segmentation.At present, what is the condition of income distribution gap and labor market segmentation? Is there a relationship between widening income distribution gap of our country and labor market this article mainly discuses. The article is divided into six chapters; the first chapter introduces the research background, research significance, research methods and research framework. The second chapter is literature review. The third chapter respectively analyzes the residents’income distribution gap, the present situation of the labor market segmentation and its reason. The fourth chapter talks the labor market segmentation on the influence of the residents income distribution gap, it points out the widening relationship between out our labor market segmentation and the income distribution gap, which means that the former causes the expanding of the latter, and further build the model to do empirical analysis of widening influence of China’s labor market segmentation on the income distribution gap. The fifth chapter is conclusion and policy recommendations of this paper.The main conclusion of this article is:Firstly, since China’s reform and opening up, due to the deterioration of residents’income distribution gap, although our country has taken many kinds of methods to restrain and decrease further widening of resident income distribution. For various reasons, the current situation is still very serious, which mainly contains income distribution gap between urban and rural residents, income distribution gap between regions, income distribution gap between the industry, and the first one is the main type.Secondly, because the household registration system, industry monopoly, unsound market and the lack of accumulation of human capital, the lack of regulation and so on, Labor market in our country also contains segmentation between urban and rural labor market, regional segmentation, industrial segmentation and departmental segmentation. Thirdly, although China’s labor market segmentation has been weakened under the condition of the state has taken a series of measures, labor market segmentation still has an important influence on residents’income distribution gap.