Income Mobility Of Industry In China

Since the reform and opening up30years, the economic development is veryrapid, but the income gap between China’s industry is poorly increasing. The currentresearch mostly uses gini coefficient and theil index on the income gap betweenChina’s industry. But they can’t reflect long-term changes in the income gap betweenthe industry. In order to reflect the income distribution in the industry more fully, wealso need to analyze the income distribution of the industry from a dynamicperspective. In other words，we need to study the income mobility of industry. Dueto the existence of income mobility so that the low-income groups have theopportunity to change the poverty status, and this will reduce the industry long-termincome inequality effectively. Therefore, studying on income mobility of industry inorder to propose appropriate policy recommendations from the perspective of equalopportunity has important practical significance.Base on the industry macro data of1986-2011years, this paper analyzes theincome mobility of China’s industry by using the income transition matrix andincome mobility index. The major findings are：(1)The income mobility presented atendency of continuously decreased and then kept stable, esp. after2003.(2)Thequality of income mobility was not high, the high income group was more likely toflow upward. Meanwhile, the middle income group and the bottom income grouptended to flow downward.(3)Monopoly, human capital and industry-level standardshad significant impacts on income mobility. According to increase the education andjob training investment and weaken the administrative control of monopolyindustries, we can break the rigid pattern and protect the equal opportunity of incomedistribution.