Regression-based decomposition of inter-industry earnings differentials shows that in 1988, 1995 and 2002, inter-industry earnings differentials made an increasing contribution to urban earnings inequality in China. T...Regression-based decomposition of inter-industry earnings differentials shows that in 1988, 1995 and 2002, inter-industry earnings differentials made an increasing contribution to urban earnings inequality in China. The primary reason for the widening gap lay in monopoly industries. At the same time, geographical location, educational level, type of enterprise ownership, type of occupation and whether the individual had a second job also contributed to rising earnings inequality, while age and being fully employed made a decreasing contribution. Therefore, if China is to reduce the earnings gap it is imperative that we remove barriers to labor market entry and break down some monopoly industries in the product market. Additionally, reducing obstacles to the free movement of labor and improving workers＇ educational level should also be important elements of the government＇s strategy for reducing the urban income gap in future.展开更多
Using Oaxaca-Blinder decomposition method, we decompose high income in monopoly industries into two parts： the reasonable and the unreasonable. Empirical analyses show that over fifty percent of the income gap betwee...Using Oaxaca-Blinder decomposition method, we decompose high income in monopoly industries into two parts： the reasonable and the unreasonable. Empirical analyses show that over fifty percent of the income gap between monopoly industries and competitive industries is unreasonable and is brought about mainly by industrial monopolies. As current income statistics do not count the high welfare benefits in monopoly industries, the above results clearly underestimate the unreasonable component of the high income in these industries.展开更多
文摘Regression-based decomposition of inter-industry earnings differentials shows that in 1988, 1995 and 2002, inter-industry earnings differentials made an increasing contribution to urban earnings inequality in China. The primary reason for the widening gap lay in monopoly industries. At the same time, geographical location, educational level, type of enterprise ownership, type of occupation and whether the individual had a second job also contributed to rising earnings inequality, while age and being fully employed made a decreasing contribution. Therefore, if China is to reduce the earnings gap it is imperative that we remove barriers to labor market entry and break down some monopoly industries in the product market. Additionally, reducing obstacles to the free movement of labor and improving workers＇ educational level should also be important elements of the government＇s strategy for reducing the urban income gap in future.
文摘Using Oaxaca-Blinder decomposition method, we decompose high income in monopoly industries into two parts： the reasonable and the unreasonable. Empirical analyses show that over fifty percent of the income gap between monopoly industries and competitive industries is unreasonable and is brought about mainly by industrial monopolies. As current income statistics do not count the high welfare benefits in monopoly industries, the above results clearly underestimate the unreasonable component of the high income in these industries.
