Research on the Influence Factors of Chinese Industry Income Gap

Abstract

Now the income gap among different industries begins to gradually expand, and it has attracted a lot of attention. Economy under the new normal more emphasizes on technological innovation. So this paper studied the impact of human capital stock and industry monopoly degree on the industry income gap, at the same time joined the analysis of the important factors of technological innovation level. Focusing on the phenomenon of widening income gap among different industries, this paper explored the technical innovation of the industry change in income mechanism. Changes in industry income is not the role of a single factor results, in addition to human capital stock and industry monopoly degree which have being more concerned about, technological innovation level also has great impact on the changes of income. Thus, this paper quantized the factors which effect the changes of industry income, using the relevant data of China 2004 to 2013, analyzed the relations between human capital stock, monopoly degree, and technological innovation level and income changes, then inspected and verified it using the dynamic panel data model. Empirical studies show that, there is a significant positive correlation between changes in industry income and the three factors. And in all elements, human capital stock plays the most important role, almost all industries’ changes in income are associated with it; Industry monopoly degree also has a significant impact; Meanwhile, the technical bias effect is clearly exists in China, especially in emerging technological industries, its employees have higher income.