Research On The Influence Of Administrative Monopoly On Chinese Industry Income GAP

In recent years, the uneven income distribution among the industries has become the focus. Since the income of administrative monopoly industries are much higher than other industries, the income gap between industries continues to expand. Reasonable income gap can be accepted by social groups. However, it is unacceptable to the public that the income gap between monopoly industries and others have become over large due to the help of national resources and power. This will not only hinder our country to build a harmonious society, to balance the development of the industry, but also affect negatively on people’s concept of choosing job. Therefore, it’s necessary to study the effect of administrative monopoly industries on industry income gap, for it can help narrow the income gap between industries, solve the urgent request of unequal income distribution, build a stable and harmonious well-off society.Many factors influence the industry income gap, such as industry scale, technical level and the employees of human capital stock. This article focuses on the effect of the administrative monopoly on the industry income gap. Based on previous research and income distribution theory, this article adopts the combined method of standard analysis with empirical test, and qualitative analysis with quantitative analysis. First of all, through the method of standard analysis, it analyzes the current basic status of industry income gap. Besides, the use of charts can help us better understand the widening phenomenon on chinese industry income gap. By its monopoly position, administrative monopoly industries obtain high profits, and at the same time, in the absence of owners, and under the combined effect of labor market discrimination and labor market segmentation between administrative monopoly industries and other industries, the income gap between administrative monopoly industries and other industries continues to expand. Secondly, in the process of empirical test, through correlation analysis of cross-sectional data, it is concluded that industry average wage level has a positive correlation with the degree of administrative monopoly. The empirical results for panel data show that, the vast majority of income gap among industries, is caused by the irrational factors of administrative monopoly. In addition, it is also affected by other reasonable factors such as labor productivity, human capital level and proportion of women and so on. Finally, according to the normative analysis and empirical conclusion, this paper proposes the following policy recommendations. First of all, to promote the reform of state-owned enterprise management; Secondly, to raise the income level of low-income groups; Thirdly, to strengthen the implementation and improvement of the law; Fourthly, to increase investment on education and vocational and technical training; fifthly, to build a better labour market in order to promote the free flow of talent; Last but not the least, to improve the industry productivity.