An Empirical Analysis Of The Income Inequality Between Industries In China

Since the reform and opening-up, China’s economy has developed rapidly. After the17th CPC National Congress, our government has also given more and more attention to people’s livelihood. But with the improvement of people’s living standards and the development of economy, people have more expectation in solving the outstanding problem of people’s livelihood. Among these problems what we should pay more attention is income inequality.We can analyses income inequality from different angles. We always analyses the income inequality among the urban dweller, the income inequality among the country dweller and the income inequality between urban and rural. The income inequality between regions is also an important problem. What will be discussed in this paper is the income inequality between the industries in China. Many studies show that the main factors of influencing the income inequality is the income inequality between urban and rural and there are some papers pointed out that, with the development of urbanization, the income inequality among urban dweller will become the main factors. Therefore we need pay more attention in the income inequality between industries which is an important factor in affecting the income inequality between urban dweller.This paper mainly uses the "China Statistical Yearbook" and "China Labor Statistical Yearbook" as the main data source. Due to the characteristics of industry income data in the two data sources are different, the use of the two data sources are different. In analyzing the income of each industry Ⅰ mainly use "China Statistical Yearbook" which gives19industry income data, while in calculating and decomposing the Gini Index Ⅰ mainly use "China Labor Statistical Yearbook" which gives94industry income data.In this paper, I mainly use the empirical method to analyze the income inequality between industries in China, so there are a lot of sheets.There are6parts in this paper. The first part is the preface. In this part I mainly introduce the background and the objective of researching the income inequality between industries, and there is also a brief description of the data and the research methods in this part. I explain the framework, the general idea, the innovation points and shortcomings in this part too.The second part is the theory of the Gini Index and its decomposition. This part is the theoretical foundation of this paper and the theories and methods of analysis on the income inequality between industries are mainly concentrated in this part. In this part I introduced the conception of Gini index, the computing method of Gini index, the conception and calculation of Single Parameter Gini Index and the decomposition methods of both Gini Index and Single Parameter Gini Index. Although there are a lot of formulas, I mainly use Matlab and Excel to calculate.The third part is the overview of the industry income. This part mainly uses the urban consumer price index, GDP and19industry average wages and other related data which is given in "China Statistical Yearbook" to analyses China’s industry average income, the relationship between economic development and industrial income as well as the general situation of the income of the19industries.The fourth part is the empirical analysis of the income inequality between industries. In this part I mainly use the methods which have been introduce in the second part to analyses the income inequality between industries.The fifth part is the impact of monopoly on the income inequality between industries.The sixth part is the conclusion and policy recommendations.