Division Of Labor, Distribution And Labor Relations

There are three concomitants of 27-year-high-speed-growth of China: (1) the enlarging inequality of personal income between deferent groups of China, (2) the slowly income growth and (3) the growth rate of consumption being less than that of productivity, leading to the serious surplus of supply. In context of high-speed-growth of China, the main issue of this thesis is how to explain the phenomena mentioned above and their logical inherent. Summarizing the distribution theory from Marx's labor-capital bargaining model, distribution theory of Marginal productivity, Second theorem of welfare economics and New Institutional Economics, the thesis will try to explain China earnings inequality in different crowds by Marx's labour-capital bargaining model.Based on empirical research, the contributions are as follow: (1) The relative scarcity of factor failing to explain the income inequality of China completely, (2) income level between different groups being correlated with capital scale per labor, and (3) with government's investment scale (its investment proportion in the whole investment, correlating with earnings level of different provinces and different industries) as well.To draw the conclusion, the main reason why the income inequality of China is: the governments at all levels are eager for enhancing GDP and related tax, leading to concentrating on prompting capital accumulation and controlling labor price. Therefore, the income inequality of China is a issue of political economy and the change relies on the institution reform and promotion of market economy, which is homology with the new classic economics.