Monopoly Causes Inter-industry Wage Differentials

Inter-industry wage differentials in China, measured in terms of average employment earnings by industry, are significant and have been increasing since 1988. The coefficient of variables measuring inter-industry average earning differentials is apparently on the rise along with the subdivision of industry. A theoretical analysis of the labour market indicates that inter-industry wage differentials are mainly due to human capital variation among the employees of different industries and the likelihood of monopoly rent sharing. An empirical study finds that employee characteristics such as sex, age and education can only explain 60 percent of CVs in the period 2003 to 2005 and the rest may be due to the effect of monopoly rent sharing in certain industries. A residual analysis of wage equation proves that the monopoly industries of technology or knowledge share a small proportion of rents with employment, whereas non-competitive monopoly industries generally garner an abnormal share of rents, as much as half of their above-average earnings for their industries. Such abnormal rents and benefits are mainly the result of low cost natural resources, the use of state-owned assets, the misappropriation of consumer welfare and the seeking of fiscal or social subsidy for cost inflation. So, China should deal with the non-competitive monopoly industries by reforming their monopoly power and primary social distribution mechanism to structure a fair income distribution order.

Inter-industry Technology Spillover Effects in China:Evidence from 35 Industrial Sectors

The present paper calculates 35 industrial sectors similarity matrices for the period of 1997-2008 using China s input-output tables for 1997, 2002 and 2007, and uses these to measure inter-industry technology spillover to analyze the spillover effects on industrial sectors lahor productivity. The empirical analysis shows that inter-industry technology spillover has a significant positive effect on the labor productivity of each industry. The elasticity of productivity effects of inter-industry technology spillover is not only larger than that of direct R＆D input, but also increases over time. We group the industries into four major categories and find that the inter-industry technology spillover effect within the categories is, on average, greater than that between the four categories, indicating that technology spillover occurs more easily between similar industries. This research shows that the interindustry technology spillover effect in China has begun to increase, and the government should take advantage of this effect.

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

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.

Fiscal Pressure, Inter-Industrial Allocation of Land and Agglomerations Effects

Land is a production factor that supports industrial development and also an important resource for increasing local government revenue.The scientific allocation of land has a positive effect on applying a new development philosophy.Based on the data of China's micro land transaction,this paper constructs the industrial dispersion indicator of land transfer to discuss about how short-term fiscal pressure affects allocation of land resources among industries and then analyzes its impacts on agglomeration effects.The results show that the greater the short-term fiscal pressure,the higher the dispersion of land transfer among industries,which holds true after going through a series of robustness tests.Further analyses show that the dispersion of land transfer among industries deteriorates the policy orientation of giving priority to key industries.Finally,the practice of dispersion of land transfer among industries weakens agglomeration economies.The research results of this paper show that local governments'strategy of land transfer among induestries for coping with short-term fiscal pressure has the characteristics of"increasing fiscal revenues and weakening the role of industrial guidance."This means that in the new stage of development,local governments urgently need to enhance their understanding of the multiple functions of land and avoid impairing industrial development for addressing the shortterm fiscal pressure.