The Study About The Effect Of Monopoly On Income Discrepancy And The Countermeasure Of The Government Regulation

Monopoly comes with the developments of economy. So it is an economic phenomenon originated from market competition when market economy reaches a certain stage. Our country is a socialist country. Differing from western countries, our country's monopoly problems come from the planned economy and the nation highly monopolizes.Many professions in the planned economy system are monopolized by the Central Committee or some correlated departments in the local authority. So differences among trades are comparatively narrow. Along with the market economy developments, especially during the transition period from the planned economy to the market economy, some professions which have been separated from the monopoly management gradually evolved into competitive professions, but there are still quite a lot of professions occupying the monopoly position due to either resources advantage or policy priority ,and by which they have obtained large amount of high profits, thus made the profession income differential expanded day by day. Officials from the Labor and Social Security Bureau indicated a few days ago that, from 2000 to 2004, the income highest professions and the income lowest ones average wages disparity expanded 1.6 times. At present, the employee's average income in those monopoly professions such as electric power, telecommunication, financial, insurance, water and electricity supply, tobacco is 2 - 3 times higher than that in other professions. If plus some extra wages and benefits, the real income differential is even bigger. Preofession monopoly has gradually become an important factor that restrains the economic development of our country. Thus, how to deal with industry monopoly and reduce its side effects have become the important work of the market supervisory department.This thesis starts with the profession income differential, by analyzing realistically the current profession income differential which has been expanding recent years elaborates respectively the reasons of the appearance of our country's profession monopoly, its historical evolution, the predominant types and its characteristics in order to administer the profession monopoly as well as reduce profession income differential. At the same time, this thesis analyzes the influence of our country's profession income differential by applying the theory to the realistic situation. To be specific, the basic characteristics on profession income differential problems of our country include weak industry, low wages in full competitive trades and high wages in the monopoly professions. Monopoly professions have gained high profits making use of its superior monopoly resources and market. The current monopolistic problems of our country lie in the combination of natural monopoly and the administrative monopoly. This thesis points out that we first of all should administer the overflow of profession differential for the purpose of reducing the problem of profession income differential through the analysis of the influence of different monopoly types on the profession income differential. Finally, by consulting foreign experiences on profession monopoly, this thesis draws up the ways and countermeasures to administer profession monopoly which includes perfecting modern enterprise system, deepening profession monopoly reform, transforming the governments'functions and strengthening the social supervision mechanism and so on. Only by perfecting governments'supervisory system, making the most of market regulation can we change the present overflow profession monopoly situation and consequently, reduce profession income differentials finally.