The Microscopic Mechanism Of Income Distribution Gap

Income distribution have always been a hot and difficult problem, which has great influence on every member of the society. Especially in the case of China's personal income distribution gap is widening constantly, it's particularly important to solve this problem. If the problem couldn't be solved appropriately, it's bound to intensify social contradictions,poses a great threat to sustain economic development and social long-term stability. Income gap has negative affect on build harmonious society. Study the status of China's income gap, analysis the reasons, and propose suggestions to regulate income gap have essential significance.As an important part of the initial distribution,a reasonable income distribution is not only closely related to employees'enthusiasm and creativity, but also have significant impact on the macro-pattern of income distribution. The thesis selected listed companies'salary as empirical sample. Research the distribution of salary within company, then extend to the whole macro-social, to study the distribution of national income.This thesis selected 2009-2010 companies listed in Shanghai and Shenzhen as a sample,study pay gap between top management and ordinary employees, and examine the determinants of the pay gap through regression analysis. The result shows that there is significant pay gap between top management and ordinary workers, and the issue is getting worse. The outcome indicates that: First, there is a positive correlation between pay gap and the size of the company, return on net assets, the proportion of independent directors, board size, region, two-level executives. Pay gap has a negative correlation with the proportion of state-owned shares, the proportion of executive ownership. Second, the level of development has a significant influence on pay gap, the more developed region, the larger the pay gap. Third, in the analysis by industries,the model reveals significant result merely in extractive industry, electricity, gas and water production and supply, construction, agriculture, manufacturing industry. Pay gap is quite large between different industries.