High incomes in state monopoly industries have drawn extensive public concerns in China. The management of state-owned enterprises(SOEs) is motivated and empowered to set payment schemes in their own favor, resulting ...High incomes in state monopoly industries have drawn extensive public concerns in China. The management of state-owned enterprises(SOEs) is motivated and empowered to set payment schemes in their own favor, resulting in the greater extent to which their senior executives are overpaid as compared with average workers. Hence, the level of unjustified high incomes is heterogeneous among employees of different income levels in state monopoly industries. Using Machado-Mata counterfactual decomposition method based on the regression of multiple quantiles, this paper measures the proportions of reasonable and unreasonable parts of pay gap between state monopoly industries and competitive industries. Our study found that the workforce of state monopoly industries are overpaid across various wage levels, while the extent to which they are overpaid increases with the rise of wage level. The implication is that compared with average workers, executives in state monopoly industries are overpaid to an even greater extent. This requires that the government focus on curbing the high executive income in addition to putting a lid on the gross payroll of SOEs in state monopoly industries. The fundamental strategy to resolving the excessive high income in state monopoly industries is to bring different types of SOEs under different corporate management models and income systems.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
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
基金sponsored by the Key Project of Philosophical and Social Sciences under the Ministry of Education, "Study of Industry Monopoly and Household Income Distribution in China’s Transition Stage (Grant No. 12JZD030)
文摘High incomes in state monopoly industries have drawn extensive public concerns in China. The management of state-owned enterprises(SOEs) is motivated and empowered to set payment schemes in their own favor, resulting in the greater extent to which their senior executives are overpaid as compared with average workers. Hence, the level of unjustified high incomes is heterogeneous among employees of different income levels in state monopoly industries. Using Machado-Mata counterfactual decomposition method based on the regression of multiple quantiles, this paper measures the proportions of reasonable and unreasonable parts of pay gap between state monopoly industries and competitive industries. Our study found that the workforce of state monopoly industries are overpaid across various wage levels, while the extent to which they are overpaid increases with the rise of wage level. The implication is that compared with average workers, executives in state monopoly industries are overpaid to an even greater extent. This requires that the government focus on curbing the high executive income in addition to putting a lid on the gross payroll of SOEs in state monopoly industries. The fundamental strategy to resolving the excessive high income in state monopoly industries is to bring different types of SOEs under different corporate management models and income systems.
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.
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.
