| Abstract | Basing on the theory of dynamic evolutive sociological stratification, we raise a new hypothesis—stages of income differentials between public and nonpublic sector. Then through the empirical analysis of CHNS’s panel data we test the hypothesis. At the high end of income, income in nonpublic sector is remarkably higher than public sector for the years 1989-1997. At the same time, the income differentials between nonpublic and public sector are becoming more and more with higher income at the high end of income. The return in education is lower in public sector than nonpublic sector. However, from 2000 to 2009, income in public sector is clearly higher than nonpublic sector at the low and middle end of income, and income in public sector is not difference with nonpublic sector at the high end of income. The return in higher education in public sector is close to nonpublic sector. Moreover, the effect of sector characteristics contributes to major income differentials between public and nonpublic sector at the low and high end of income. These results prove the hypothesis, and provide inspiration to adjust structurally Chinese income distribution. |