Abstract:Foreign direct investment(FDI)can influence the employment structure and industrial relative productivity of host country by labor demand effect and technology spillover effect, and then influence the industry wage gap which is uncertain. Because investment motivation and entry mode are different, the impact of vertical FDI and horizontal FDI as well as single-proprietorship mode and joint venture on industrial wage gap has heterogeneity and regional difference. Based on the empirical analysis of China service industry, FDI enlarge the industry wage gap by increasing the relative employment scale of low wage industries and by promoting the relative labor productivity of high wage industries, which conform to the trend of the abundance of low-skilled labor and the shortage of skilled labor. FDI can make the industry wage larger in the region that mainly with the vertical FDI and the joint venture mode FDI, while the region mainly with the horizontal FDI and single-proprietorship mode FDI has no effect. As a result, China should make efforts to improve human capital level of labors, sufficiently protect the interests of low-skilled labor, actively encourage and guide the horizontal FDI and single-proprietorship mode FDI, meanwhile moderately reduce the vertical FDI and the joint venture mode FDI, continue to improve the technical absorption capacity of the enterprises to narrow the technical gap, and then decrease the industry wage gap while making use of foreign capital efficiently.