An Empirical Study On The Factors Affecting Cross-industry Wage Gaps In China

Since the reform and opening up thirty years, our country’s economy has been experiencing the changing and innovative; the position and salary range of laborers are improvement at some level. However, because of the imbalances in all industries development and the influence of monopoly factors, the income gap among different industries becomes expanded endlessly. If this gap exceeded reasonable range, it would be restrict the economic balanced development. At the same time, it also effected people’s employment and social stability. Based on the real situation of industries gap of our country, this thesis mainly discussed the affecting factors. According to the quantized comparative study, it aims to analyze the causes.In order to illustrate the industrial income gap causes, this thesis tries to do the research from two perspectives. On theoretical side, it uses the relevant theories to do the research. On empirical side, according to the income situations and statistical annual’s data, this thesis analyzes the different industries’ income, the level of wage and the influence factors for the past two decades. The empirical research can further divided into two levels:first level is static and dynamic analysis which uses the Theil Index, Descriptive Index and extremum, skewness, kurtosis ways. And then, this thesis chooses the manufacturing and financial industries as cases to do the empirical analysis by time series.The results in this thesis show that:in the past decades, the average income gap in all industries of China is expanding tendency. In some higher income industries, its dispersion degree is larger than the low wage industries; the average wages in all industries are significant difference. Econometric model analysis shows that:the wage level of manufacturing and financial industries made a positive-going influence for degree of monopoly, capital investment, human capital attainment and productivity. On the contrary, it is negatively correlated for labor input. The result of variance decomposition shows that:among all of affecting factors, monopoly factor mostly influenced the income gap between manufacturing industry and financial industry. The next factors are the human capital attainment and productivity. The influence degree of the labor input and capital investment degrees is the smallest.Based on the research conclusion, this thesis brings forward the policy proposal in order to narrow the gap among all industries. For monopolized industries, it should strengthen regulation and reduce the unreasonable income because of monopoly profits, meantime, improving the human capital level of low wages and labor productivity are equally important.