An Analysis of the Issue of Inter-Industry Income Inequality in China

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After entering the new century,the inter-industry wage differential in China is expanding continually.The regression-based Shapley-value decomposition shows that such factors as human capital,ownership system,capital investment and technology have significant influence on the inter-industry income inequality;of which the contribution of human capital to the differential is about 45%,and the ownership system is more than 20%.Therefore,such administrative measures as equal education,increasing education returns,opening the labor market of monopoly industry,and carrying out labor negotiation system can effectively settle the problem of inter-industry wage differentials. After entering the new century, the inter-industry wage differential in China is expanding continually. The regression-based Shapley-value decomposition shows that such factors as human capital, ownership system, capital investment and technology have significant influence on the inter-industry income ofquality; of which the contribution of human capital to the differential is about 45%, and the ownership system is more than 20% .Therefore, such administrative measures as equal education, increasing education returns, opening the labor market of monopoly industry, carrying out labor negotiation system can effectively settle the problem of inter-industry wage differentials.
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