Abstract: After entering the new century, the inter-industry wage differentials in China is expanding continually. The regression-based Shapley-value decomposition shows that such factors as human capital, ownership system, capital investment and technology have significant influence on the inter-industry income inequality; of which the contribution of human capital to the differentials is about 45%, and the ownership system is more than 20%. Therefore, such administrative measures as equal education, increasing education returns, opening the labor market of monopoly industry, and carrying out labor negotiation system can effectively settle the problem of inter-industry wage differentials.

Key words: human capital；monopoly; inter-industry wage differentials; Shapley-value decomposition