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Title:: Empirical study on the influence of total factor productivity on industry income gap

Author(s):: TANG Shuai1; WANG Fang-fang2; (1.School of Statistics and Applied Mathematics，Anhui University of Finance and Economics，Bengbu 233030, Anhui, China；2.School of Statistics，Lanzhou University of Finance and Economics，Lanzhou 730000, Gansu, China)

Keywords:: total factor productivity; MLD index; kernel density estimation; industrial income gap; industry

Abstract:: Using the industry high group panel data of China from 2003 to 2011, this paper examined the influence factors of total factor productivity on industry income gap based on the MLD index, nonparametric kernel density estimation and varying coefficient model. The results show that the total factor productivity is indeed an important factor of industry income gap. Specifically, the MLD index of Chinas industrial sector shows a downward trend, the degree of income distribution concentration is decreasing, and the tail is getting thicker. In addition, the result of varying coefficient models shows that without considering other factors the strength of the gap between industries is around 6.9%. With the inclusion of other factors, the influence of total factor productivity on each independent industry is gradually decreasing. However, the impact strength of the gap between industries is rising.