Interpreting Inner Industry Income Gap with Rent Sharing and Rent Remising
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| Title | Interpreting Inner Industry Income Gap with Rent Sharing and Rent Remising
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| Author | Zhou Yunbo, Wu Peng and Shen Yangyang |
| Organization | School of Economics of Nankai University; Institute of Economics, CASS |
| Email | zyunbonk@163.com；wuzuopeng831228@163.com；shenyangyang428@hotmail.com |
| Key Words | Inner industry income gap; Efficiency wage; Rent sharing; Rent remising; Panel data error correction |
| Abstract | Based on review of the literature of inner industry income gap, this paper note that the key interpreted this issue is study on rent sharing and rent remising. The estimated result of error correction model based on the sample of China’s Industrial sectors show that: increase of labor remuneration will indeed make the labor to work harder for creating more profit and then advance the industry profit margin; when the distributable earnings of an industry increase, firm in this industry prone to pay more labor remuneration. The inner industry income gap brought by rent sharing makes 45.0% of the existing inner industry income gap, which is efficient but unfair. The inner industry income gap brought by rent remising makes 70.8% of the existing inner industry income gap. Then without considering efficiency, the pure unfair part of the gap brought by rent remising makes 25.8% of the existing inner industry income gap. The existence of rent sharing and rent remising has restrained the decline rate of inner industry income gap in the researching period. |
| Serial Number | WP464 |
| Time | 2013-06-26 |
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