Enterprise Average Income Under Industry Concentration And Enterprise Economic Type

“ Take public ownership as main part,together with the development of the other ownerships.” is the basic economic system of China.All types of enterprise ownership not only contribute to the steady increase of the economy,but also influence the income distribution of China.Some of researchers believe that the different income distribution between enterprises with different ownerships increase China’s income distribution gap.The other researchers believe that it is industry concentration differences the main cause of enlargement of income distribution.Along with the reformation and development of state-owned enterprises,now China’s state-owned enterprises mainly locate on those industry of high concentration which related to national economy and the people’s livelihood.In that way,is the different income distribution between enterprises with different ownerships the key to the enlargement of China’s income distribution gap? Or is the monopoly is the main cause of enlargement of income distribution? The reason need a further research.Firstly,through study of other related literatures,a basic conclusion of industry concentration’s influence on industry income distribution,and enterprise ownerships’ influence on individual income distribution was drawn.Secondly,briefly introduced the history background of this research that is the development of economic system and state-owned enterprises’ reformation,and the policy reformation and development of China’s income distribution.Thirdly,after give definitions to three important variations,enterprise ownership type,industry concentration,and enterprise average income,a literature basis was built.According to the influence structure of right allocation on income distribution,thus make enterprise average income fair and rational,which concludes equal participation right,fair income right,abundant security right,and their mutual effect.Then,based on Chinese industrial enterprise database,measure the enterprise average income in 2004,and analyze the influence of enterprise ownership and industrial concentration on enterprise average income.Finally,taking the current situation in China into consideration,according to the three dimension of right allocation,some suggestions were given from different aspect.Through this study,four main conclusions were drawn:(1)Industries with high concentration ratio in China mainly locate on industry which combines natural monopoly and administrative monopoly,such as petroleum industry,mining industry,and tobacco industry.This is unanimous with the reformation result of state-ownedenterprise in history study.(2)Industries with high capital output ratio mainly locate high and new technology industry and natural monopoly industry,industries with high labor output ratio mainly locate on the most basic processing and manufacturing industry which is also considered labor intensive industry.(3)The influence of ownerships is far much more than those of industry concentration ratio.This conclusion corrected the common sense that it was high industry concentration is the main reason which influences the enterprise average income.(4)The average income in state-owned enterprises is much higher than the other enterprises,from 7.01% to16%.(5)Among the comparison of all factors between enterprises with different ownerships,is was found that all factors have more significant influence on state-owned enterprises’ average income,apart from average profit.And industry concentration causes larger gap only when it’s state-owned enterprise.The difference of co-efficiency could be 7.5 times.According to those results,some suggestions were proposed from three dimensions of right allocation.As for state-owned enterprises,divide into business kind and public benefit kind,also divide into monopoly kind and competitive kind,and propel the state-owned enterprises’ reformation by kind.Make participation rights more equal,de-administerization of the administrative staff of state-owned enterprises,set up a comprehensive incentive mechanism and risk mechanism for administrative staff of state-owned enterprises.It’s of great significant on the reformation and supervision of state-owned enterprises,to avoid the loss of state assets.Make income rights more fair,make further improvement of initial allocation mechanism which lead by the proportion of production factors,e.g.labor,capital,technology,management,etc.improve the proportion of labor in wage income.Make guarantee rights more abundant,protect the income of workers in non-state-owned enterprises,and boost a reasonable increase.