Study Of The Evolution Of China's Labor Share—the Perspective Of Double Heterogeneity Of Enterprises And The Labor Force

Centre on the problem that how labor share evolve along with the progress of the industrial upgrading based on dual heterogeneity,this paper focuses on the following aspects:The second chapter is the theoretical basis of the full text.In this chapter,I review and summarize the existing relevant theories and then establish the analytical framework of the full paper.I establish a mathematical model of the evolution trend of labor share under the condition of double heterogeneity,in order to describe the characteristics of the trend of labor share in a specific period in China.After that I build a framework for the reconstruction of an institutional change to explain the reasons for these characteristics.In this model,industrial upgrading,high technology industry and enterprise growth caused the increase of demand for high quality laborers is the objective cause,the limit of comprehensive national strength and institutional factors lead to insufficient supply of high-quality labor force.High tech enterprises choose to achieve output growth through alternative means.So the labor demand of high technology enterprise is reduced,the growth of the wage of high-quality labor force goes significantly slower than that ofthe output,the labor share goes down.This inhibited the growth of high-quality labor force supply in turn.Since the supplies of highly qualified workers is less than demand,this makes the supply far exceed demand in the low quality labor market,which is already higher than the demand,Labor share of low tech enterprises goes down.The overall labor share decline.Only when the cost of the replacement cost of the factor exceeds the cost of increase the high quality labor force the overall labor share may increase.This logic is the core of this paper.The third chapter studies the influence of enterprise heterogeneity on the labor market and the change of the average reward level when considering the influence labor heterogeneity.At beginning,I comprise the differences of high technology and low technology enterprises from the following aspects: productivity per capita,capital intensity,enterprise scale;I also comprise the differences of high-quality and low quality workers from the following aspects: ability,productivity level.Then I analyze the impact of enterprise heterogeneity on the labor market,which is the degree of labor market segmentation.Finally,this paper analyzes the real per capita wage gap between high-tech enterprises and low tech enterprises,and to find the main influencing factor on the per capita wage gap between labor market segmentation and human capital gap.The fourth chapter is the key content of the qualitative analysis of this paper.Firstly,this chapter analyzes the supply and demand structure of high quality labor force.And then analyzes the institutional causes and changes of the structure.The remainder of this chapter focuses on the analysis of the response of high tech enterprises to the supply and demand situation of high quality labor market and the evolution of labor share in the face of high quality labor market.The fifth chapter is the quantitative analysis part of this paper.The analysis of the preceding text has left two questions to be verified: one is about the future trend of labor share,will it go as what the theoretical model of this paper predicted that it will experienced a turning point? The other is about the biased technological progress? These two problems cannot be solved through qualitative analysis.The first problem is about the trend of the future,there is no real data;the second problem is unable to be quantified.So they can only be estimated by indirect methods.Therefore,this chapter is mainly to complete two tasks: In the first section,according to the theoretical model,I utilize an econometric model to investigate how will labor share evolve along with the industrial upgrading process,both of the data of industrial and enterprise level are used in the process of analyse.In the second section I estimate technology progress deviation indexes and the corresponding the growth rate of them,based on an existing meathod.After that I analyze the degree of biased technological progress of high tech enterprises and low tech enterprises by comparing the same index and their growth rate between them,then I compare the results with that of the earlier three chapters.The sixth chapter is the conclusion of the whole paper.The following conclusions can be drawn from the previous analysis:First,the labor share indeed goes decline in the process of industrial upgrading in China,but it will rise when the proportion of high tech enterprises exceed a certain level.In this paper,the theoretical model,qualitative and quantitative empirical analysis show that at present China's labor share keeps decline and labor share of the high technology enterprise is lower than that of low tech enterprises at the beginning of the period in this paper,and both of them decrease until now.The research of this paper finds that neither whole nor part of the labor share experience rising in our country.The opinion that the labor share will rise when the industrial upgrading eceed a certain level is the result of theoretical and empirical analysis.In theory,our labor share decline was a result of a series of complex factors,and these factors either can be solved step by step in process of the economic and social development,or the existence and expansion of them is unsustainable because that it needs to be funded,labor share will rise when the cost of existence and expansion of the factors whitch cause the decline of it is too high to sustain.From the perspective of empirical analysis,regression analysis on the evolution of labor share in China with the industry upgrading,no matter from the industry view,or from the microcosmic perspective,represents that coefficients of the key explanatory variables and its square are very significant and its sign completely in accord with theoretical expectations.So it can be concluded that China's labor share declines at the beginning of the process of industrial upgrading.Second,double heterogeneity is the prerequisite for the existence of the evolution of labor share.In the economic structure of our country at present stage,coexisting of a few high tech enterprises and most backward,traditional enterprise causes that there is a marked different in the mode of production,distributionbetween high tech enterprises and backward ones,which makes labor share goes along with the changeof the proportion of the two kinds of enterprises inevitable.Meanwhile,the target of national development,national rejuvenation requires that high-tech enterprises to gradually eliminate low tech enterprises,so the process that labor share decreese at the beginning of Industrial upgrading is inevitable.And labor heterogeneity makes the situation more complex,high-quality labor and low quality of the labor force exist at the same time makes the labor market in terms of the quality of the labor force and the emergence of segmentation and high technology enterprises can only employ high-quality labor force.The cost of training of high-quality workers leads to the shortage of the supply of them,which makes high technology enterprise response is more complex and its influence will be transmitted to the low technology enterprises and its impact on the employment and wage levels.So it can be conclude that double heterogeneity is the prerequisite for the existence of the evolution of labor share.Third,the contradiction between supply and demand of labor market in high-tech enterprise is the direct cause of the decline in labor share at the present stage.In the context of China's industrial upgrading,high-tech enterprises expand quickly and its output grows steady.This makes the demand for high quality labor force grow as well,but the supply of high-quality labor force in China does not keep pace with it,which resulted in the scarce of high-quality labor market.Enterprises can only increase output in the way of replace labor force as capital,which causes the demand of high-quality labor force decline gradually and equal to the supply of high-quality labor force finally.In this process the wages of workers in the high-tech enterprises grows far slower than the increasing of their output.Meanwhile,the number of workers in high-tech enterprises reduces relatively or absolutely.Both of them caused a decline in the labor share of high-tech enterprises.The high technology enterprise's situation is conductive to the low tech enterprises to cause their employment pressure,low tech enterprises labor share also declined.The direct cause of all this is the contradiction between supply and demand of high-quality labor market.Forth,the ultimate cause of the shortage of high-quality labor supply and prtocess that the high-tech enterprises replace labor force as capital can be summed up in two categories: historical tradition and legacy issues,development issues.The official standard,which existences more than 2000 years,hurts the enthusiasm of becoming a high-quality labor force except manager among labor force.This institutional arrangement hinders the increasing of the supply of high-quality labor force seriously;The situation of poor and lag of China in the past more than 100 years causes the mean education and quality level of China's labor faces is very low,it causes resources can be used for cultivate high-quality labor force are very limited.These can be attributed to historical problems.A series of unreasonable institutional arrangements in the period of institutional transition has resulted in the improper use of resources for cultivate high-quality labor force.At the present stage,the development level of our country causes the enterprises to replace labor force as capital,the capital deviation technology progress is easier,and these all can be reduced to the development question.