Re-discussion on the rationality of high income of monopoly industries: evidence from the employer-employee matched data

Background: Industrial income differential is the most important cause of the public dissatisfaction with the income inequality in China. The high income of monopoly industries is now the typical one of the massive income inequity phenomena. But objectively speaking, not all high income of monopoly industries is unreasonable. The income differential caused by employees’ education level is reasonable in a certain range. Measuring and analyzing the high income of monopoly industries should be based on taking various elements such as employees’ education level and working age into account.