Research On Manufacturing Industries Wages Disparity Influence From International Trade

From the seventies and eighties of the last century, as the acceleration of world tradeliberalization, international trade including the North-South trade, North-North trade, inter-industrytrade, intra-industry trade and other international trade forms has developed rapidly. At the same timeof the trade linearization, the wage gap expansion in all kinds of countries is intensified. So therelationship between international trade and wage gap is becoming the hot field of the internationaleconomics theory and empirical analysis.A large number of scholars have systematically studied the relationship between internationaltrade and wage gap from both theory and practice and explains respectively how the inter-industrytrade, the intra-industry trade and the intra-product trade affect the wage gap. Although the effect ofdifferent forms of international trade on the wage gap is different, their mechanism is similar.International trade affects the domestic wage gap respectively through commodity prices,technological progress, the individual behavior as well as other means, such as labor elasticity ofdemand, non-formal sector, education and the government income redistribution etc.This paper gives some empirical conclusions about how China’s international trade affects itswage gap on the basis of analysis of theories, which are as follows: From the perspective of industrywage gap, it shows a close correlation between foreign trade and real wages in China’s industries.China’s inter-industry wage differentials show the trend of gradual expansion with the adjustment oftrade structure. The empirical research has found that the inter-industry trade and intra-industry tradeplay a different role in the wage gap. The impacts of China’s international trade on the inter-patternwage gap (the wage gap between inter-industry trade industries and intra-industry trade industries) areas flows. The effect of general trade，exports and imports on inter-pattern wage gap is uncertainbecause it weakens the wage both of inter-industry trade industries and intra-industry trade industries.The impacts of China’s international trade on the intra-pattern wage gap (the wage gap withininter-industry trade industries or intra-industry trade industries itself) are as flows. In the form ofinter-industry trade, general trade, exports and imports tend to widen the wage gap. In the form ofintra-industry trade, general trade and imports tend to expand the wage gap while exports tend tonarrow the wage gap. So it is obvious that international trade play an important role in expandingChina’s industry wage gap.Therefore, correctly understanding and dealing with the relationship between international tradeand the wage gap in China is serious. The measures are, on the one hand, actively adjusting the product structure, the industry structure and regional structure of China’s international trade,improving the elasticity of demand for exports, shifting the consumption from foreign market todomestic market, and mitigating the negative effect of international trade on the domestic productivityand employment. At the same time, we should speed up the inter-regional transfer of the industriesfrom the eastern region to the central and western regions. The eastern regions primarily undertake theinternational trade in services from the developed countries and expand the demand of high-skilledlabor. The central and western regions mainly undertake the manufacturing industry from the eastregions, and even the foreign countries and improve the employment and welfare of low-skilledworkers. The other measures are actively using economic and non-economic means to expandemployment opportunities and improve income distribution. The first to do is straightening out theprice of labor and increasing the proportion of the labor’s remuneration in the initial distribution offactors. The second to do is emphasizing the industry equity, regional equity and equity amongmicro-subjects in the redistribution process. In a word, trade reform and income distributionadjustment are the same important to effectively reduce the negative impact of international trade onthe wage gap.