In the context of service economy, this book studies the impact of the development of service industry on China's urban income distribution model. With the formation of modern service economy pattern dominated by cities, service industry has become the primary industry that affects the initial income distribution pattern of Chinese residents, especially urban residents, at present and in the future. In China, the special unbalanced dual structure of service industry further amplifies the income inequality of urban residents. The development of China's service industry presents a highly dual structure, which is manifested in the producer service industry and consumer service industry: (1) the coexistence of high productivity sectors and low productivity sectors (2) the coexistence of monopoly departments and competitive departments (3) the coexistence of knowledge intensive / capital intensive sectors and labor-intensive sectors (4) the coexistence of non-tradable localization departments and tradable internationalization departments. The non-equalization dual structure of the public service industry, which should play a role in redistribution, prevents it from playing the role of flattening the income distribution curve. Such industry development characteristics may make the income distribution curve develop from an olive shaped inverted U-shaped to a M-shaped that collapse in the middle, resulting in a more unbalanced pattern of residents' income distribution.
