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    The Report Says China'S Industry Income Gap Is 4.2:1&Nbsp; Wages In The Financial Sector Are The Highest.

    2011/12/2 8:51:00 14

    Reporting Industry Income Gap

    For a long time, many people feel that the current wage gap is large.

    What are the main causes of the gap? What are the reasons for the wage gap?


    In December 1st, the fourth China Labor forum was held in Beijing.

    The forum is sponsored by the Ministry of human resources and social security, and focuses on the construction of harmonious labor relations. It will start exchanges and discussions on labor relations, employment, income distribution and social security.


    At the forum, the labor and wage Research Institute of the Ministry of human resources and social security released relevant reports.


    The report pointed out that the current wage gap in China is mainly reflected in four aspects, namely, the gap between industries and enterprises, the gap between urban and rural areas, regional differences, the gap between senior managers and ordinary workers. The wage gap between these four areas has been expanding in recent years, which should arouse social attention.


    The 4 aspect is widening the gap.


    Yang Liming, deputy director of the labor and wage Research Institute of the Ministry of personnel and social affairs, said that in the early days of reform and opening up, the emphasis of wage reform was to break the "egalitarianism".

    Now, the wage distribution system conforming to the characteristics of China's socialist market economy has been initially established, but the new problem is the widening gap between wage and income.

    The gap lies mainly in 4 aspects:


    The wage gap between industries and enterprises is widening.

    In 2010, the average wage of the employed persons in urban units was 36539 yuan, and the average wage of the employed personnel in the urban and private units was 20759 yuan.

    The industry with the highest average wage is the financial industry, 70146 yuan; the lowest level of agriculture, forestry, animal husbandry and fishery is 16717 yuan.

    The ratio between the highest and the lowest is 4.2: 1.

    In the 80s of last century, the wage gap between industries in China remained basically between 1.6 and 1.8 times.

    The gap between most industries in the world is between 1.5 and 2 times.

    The wage gap between enterprises is even bigger.

    In 2010, the wages and bonuses of a bank employee in Shanghai were 296 thousand and 600 yuan, and the other welfare benefits of employees were 60 thousand and 800 yuan, totaling 357 thousand and 500 yuan, which was 10 times the average wage of the employees in urban enterprises.


    The widening income gap between urban and rural areas.

    In 2010, the per capita disposable income of urban households was 19109 yuan, the per capita disposable income of rural households was 5919 yuan, and the ratio of two households was 3.23: 1.

    In 1990, the ratio was 2.2: 1.

    The proportion of most countries in the world is less than 1.6.

    {page_break}


    Regional income gap widened.

    In 2010, the highest average wage in Shanghai was 66115 yuan, the lowest in Heilongjiang province was 27735 yuan, the highest lowest ratio was 2.38: 1.

    In 1990, the ratio of maximum wage to minimum wage in China was 1.84: 1.


    The income gap between executive pay and ordinary workers is widening.

    According to statistics, the average annual salary of executives of listed companies is 668 thousand yuan in 2010, which is more than 18 times the national average wage in that year.

    The wages of some private enterprises and simple workers are low.

    In 2010, the average monthly wage of employed persons in three industries in the private sector of the town was 1461 yuan, less than half of those in the urban units.


    5 factors make the difference.


    What is the deep-seated factor determining the wage gap? Does the gap mean unfair? Yang Liming believes that the large gap between wage and income has become a social hot spot and should not be taken lightly.

    The wage gap existing in reality is the result of a combination of various factors and mechanisms.


    First, the quantity and quality of labor provided by workers are different, which is the core factor determining wage level and wage gap.

    More skilled labor, more responsible jobs in the production process, and so on often pay higher wages.


    Secondly, the commodity market and the law of value will distort or magnify labor differences.

    For example, employees with good economic returns may get higher wages.


    Third, the human resources market will have a moderating effect on wages. The price of labourers with oversupply will be low, and the price of labourers who are in short supply will be on the high side.


    Fourth, the regulation of production factor market is not small.

    In the era of strong capital and weak labor, the proportion of capital elements in the distribution of wealth is relatively large, and the share of labor elements in the distribution of wealth is relatively small.


    Fifth, the policy of the national income distribution system will play a guiding role.

    On the one hand, we must oppose equalitarianism and allow some people to get rich first. On the one hand, we should guard against polarization between the rich and the poor, narrow the income gap and achieve common prosperity.

    {page_break}


    It is generally believed that the core factor of wages is the quantity and quality of labor provided by laborers, which is the objective basis of the principle of distribution, and the environment of national income distribution is changeable.


    Government regulation is indispensable


    A reasonable wage gap is conducive to motivating workers to improve their labor efficiency, and the gap between them will intensify contradictions.

    At present, China's wage gap is too large. First, the gap between the two countries is widening faster. Two, compared with the market economy countries, the gap between industries and regions is too large.

    At present, China's human resources market and production factor market are not yet mature, which has become the institutional reason for the wage increase in China.

    Therefore, Yang Liming believes that the role of the government is indispensable at this stage.


    As the designer of the system, the government should consolidate the institutional foundation of income distribution.

    It includes establishing a normal wage growth mechanism, reforming the wage management system in state-owned enterprises, establishing wage consultation and democratic participation mechanism in non state owned enterprises.


    As an amendment to market regulation, the government should aim to counter cyclical regulation and reverse regulation to the market.

    For example, in the initial stage of reform and opening up, China's capital shortage and employment pressure were great, so the policy inclined to capital.

    At present, it is necessary to increase protection for vulnerable groups in the human resources market, such as simple workers.

    Because the ordinary laborers whose supply exceeds demand is always at a disadvantage, allowing the market to adjust the wage level will be low, and the policy needs to be properly protected.


    In addition, for some industries with cyclical characteristics, the government needs to use tax levers and income policies to implement counter cyclical regulation.


    The forum reached a consensus that the construction of harmonious labor relations is an important foundation for ensuring and improving people's livelihood and maintaining social stability. In the future, we should build a harmonious labor relationship with Chinese characteristics, improve the quality of employment, rationally adjust the relationship between income distribution and strengthen social security.


     
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