ABSTRACT

In this study, we employ the methodology of Shapley value decomposition (Shorrocks, 1999) and combine with wan (2004) decomposition method. Recently, the Shapley decomposition has been widely used in the labor economics, particularly in disassembling of income inequality. The advantages of the Shapley decomposition method doesn’t only disassemble the contribution of industrial effect and

enterprise effect, but also can explain the specific influence factors such as the scale of enterprise, government correlation degree provided in the model. The method is appropriate for any profitability difference index and any profitability decision equation.