he Difference, Equilibrium and Evolution of the Wage in Inter-province: an Analysis Based on the Equilibrium Theory

he wage of the Official is one of the focus issues in the public and labor economics. As we all know, there are great gaps of the economy between the provinces in China. Therefore, the wage of the officials between the provinces is quite different from each other. Then an issue arises. The wage of the official should be equilibrium in what level. Based on the equity theory of Adams and the bureaucrats utility model of Niskanen, together with the modified human capital model of Mulligan and Sala-I-Martin, the author design a model of equilibrium wage and calculated the equilibrium wage of each province and its evolution. Equalibrium theory and public economics. The difference between the real wage and equilibrium of the West of China is bigger than that of the East of China. The gap between the real wage and the equilibrium level are decreasing during the recent years after the adjustment of the officials’ wage. We can see that the results provide a conference for the regulation of officials’ wage.