The Empirical Study On The Income Gap Between The Industry In Jilin

As the old northeast industrial base in China, great changes have taken place in theeconomy of Jilin. With the implementation of policies and comprehensive reform of theeconomic system, income gaps have widened, especially the gaps between industries.These gaps are important compromises of the total income gaps, which have influenceon the development and social stability and have draw great attention in society. So far,most scholars at home and abroad used qualitative research to study this problem, andfocused the research areas on national wide. The study of income gaps from provinceviews are seldom seen in the paper. Because of the above reasons, the author tries to useboth qualitative and quantitative method to study the income gaps in Jilin province andanalysis the causes, structure and the influences of this problem.The paper, based on the existing study, chose income gaps between industries ofJilin province as the studying object, and used MLD index and total entropy index asmainly determined indicators. In addition, the paper also used comparative analysis,combined qualitative and quantitative research methods to analysis income gap betweenindustries in Jilin province from1985to2012.Firstly, the author explained generally theories in the field of research.Secondly, based on the latest data, the author calculated the extreme difference,extreme ratio, coefficient of variation, Theil index and the MLD index and otherindicators and founded that in1985-2012, income gaps between industries in Jilinpresents three different stages of changes in trend. Form the study of average wages inJilin in2012, the comparison of income gaps between the whole nation and other twoprovinces of northeast, it shows that the income of various industries in Jilin is lowerthan the above two regions, whereas the income gaps are narrower than the nationalwide and the other two provinces in northeast. According to the decomposability ofMLD index, the author studied the influence of different industries and monopolyfactors on the income gap between industries. Thirdly, used panel data studying factors influenced on the income gap betweenindustries. The result shows that human capital, the industry productivity and the degreeof monopoly of industries have positive impact on the widening of the gap. Amongthem, human capital impacts more, while the industry productivity impacts less.Fourthly, the theory of Co-integration, ECM and Granger causality test are used inthe empirical research of the relationship between economic growth and industrialincome gap. The result shows that in the short term the industrial income gap had nosignificant effect on economic growth, besides the average income of workers has rigidfeatures, economic growth has no significant impact on the industry income gap either.In the long run, the industrial income has phased impact on economic growth, butindustrial income gap does not Granger cause economic growth. In the period of earlyreform and opening up, industrial gap boosts economic growth, at the same timeeconomic growth widening the gap. At present stage, economic growth has negativeeffect on the widening of the gap, and it means that economic growth narrowing theindustrial income gap.At last, constructive recommendations are put forward based on the study of theindustrial income gap, the causes and the relationship between economic growth.