Abstract
This paper uses the Heckman model to evaluate the income difference between the public sector and the private sector based on the CHNS data. The research finds that the difference of the public sector versus the private sector between the west area and the east area is about 10% from 1989 to 2000, the transition of the income difference is smooth, that data has made sharp increase to 32% from 2000 to 2011. Considering the income difference between the west area and the central area, the central area and the east area from 1989 to 1997, the data is about 10~15%, from 2000 to 2011 is rocketing time, the data reaches 20%. This paper is very revealing about the income difference ofthe public sector versus the private sector is increasing year after year, and the economy is developing rapidly but with imbalance among different areas in China. It would provides the reference for adjust the income distribution system in future.
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