Research on the evolvement mechanism of industry wage differential —empirical analysis based on sample investigation

Using data from macro statistics and micro survey, the authors validate and estimate the industry wage differential by calculating Theil index, coefficient of variance. Industries are classified to monopoly and non-monopoly ones according to the degree of monopoly. Wage equations are estimated respectively to examine the contribution of individual traits to income. Then the unemployment risks are analyzed comparatively in ways of logistic regression. Itpsilas found that rate of return to education in monopoly industry is higher. Finally wage differential in monopoly and non-monopoly industries are decomposed by Oaxaca-Blinder method, which indicates 48.37% of the industry wage differential between monopoly and non-monopoly industries can be explained by individual characters, 51.63% unexplained. That means industrial discrimination exists. It comes to the conclusion that the solution of monopoly segmentation in labor market is the key to reducing industry wage differential.