Research Of Labor Income Share In The Context Of Biased Technological Progress And Globalization

Since reform and opening, China's comprehensive national strength has increased significantly. GDP in 2010 reached 39.8 trillion yuan, ranking second in the world, the state revenue reached 8.3 trillion yuan; At the same time, we must clearly see that unbalanced, uncoordinated and unsustainable issues are still outstanding during the development, the large income distribution gap in China is one of them and need to be solved currently. However, in the past for a long period of time, the discusses of the Chinese scholars on the income distribution is mainly concentrated in the redistribution area, including interpersonal, region and urban and rural in three dimensions, initial distribution of income (factor income distribution) is basically ignored. Research indicates that the income gap between the elements will significantly improve the deterioration of interpersonal income distribution pattern, and not conducive to the scale of consumption growth, so the research of income distribution for the elements is extremely important. Statistics show that China's labor compensation share of GDP (the share of labor income, the same below) in 1990 to 53.4% drop to 39.7% in 2007, a drop of 13.7 percentage points. China's initial structural imbalances in income distribution behaviored into two prominent characteristics:First, the low proportion of labor income, the second is fast decline in the proportion of labor income. Therefore, in the current context, accurate analysis of the reasons for changes in labor income share from the theoretical level and experience level has a very important practical significance.This paper presents theoretical models in the decision of labor income share in the three levels as the starting point, empirical analysis of capital deepening, technological progress and globalization on China's labor income share decision, trying to find the resulting change in labor income accounted for the reason and so make the policy recommendations on the improvement of China's labor income share. Text is divided into five chapters.The first chapter is an introduction, this study mainly describes the background and significance of the research, the research methods and content, and proposed the innovation and inadequate. this paper is a combination of theoretical and empirical research methods. Empirical research based on theoretical models, build a decision model of the labor income share upon biased technological progress and open conditions. Also evidence, in turn, helped the theory, according to the empirical results, this paper made a in-depth analysis of biased technological progress and globalization on China's labor income share of the path.The second chapter is the theory of labor income share decision and the practice based on the theories are reviewed. First introduced definition and measurement of the labor share and the structural factors accounting for the change of the labor share, and then introduced the theoretical models on the decision of labor share from three levels of labor income and the empirical analysis. Theoretical analysis at early is mainly based on neo-classical assumption, and that the labor income share is constant. Subsequent scholars have begun to relax the conditions of neo-classical assumptions, research the labor income share upon biased technical progress and a imperfect competitive market conditions. In recent years, globalization has also been incorporated into the model to analyze the labor income share. Analysis of experience primarily about the factors accounting for the effects of labor income, including capital-output ratio, technological progress, globalization, economic development, human capital accumulation and financial income and expenses.The third chapter is the empirical analysis of the labor share, focusing on capital deepening, technological progress and globalization's impact on the labor income share. In order to better examine the impact of these three variable on labor share, select the dynamic panel model, and use the system GMM estimation. As the labor income share showed a different trend before and after 1996, model fitting is break up into two periods. Model estimation results show that:capital deepening in the two periods of regression coefficients were significantly positive; technological progress in the two periods of regression coefficients are negative; dependence on foreign trade in the two periods of regression coefficients are significantly negative, foreign direct investment impact on the labor income share is positive.Chapter IV is conclusions and policy recommendations. Conclusions of the content and make meaningful policy implications. The conclusions and policy recommendations related to the following main points:1. labor income share of capital deepening has a positive impact, but the effect is gradually reduced. Therefore recommended that policy-making department cannot just pursue capital deepening, but should make more use of other factors accounting for the positive impact of labor income.2. Technical progress is more biased to capital, and is not conducive to the improvement of the labor income share. Suggested that the government encourages the development and introduction of labor biased technological progress, economic policy.3. SS theorem does not apply to China, The impact of trade dependence on the labor income share is negative. Suggested that enhance the added value of China's exports.In this paper, there are two aspects of the exploratory study:First, the current paper on the analysis of the changes in China's labor share are many and miscellaneous, and the conclusions of direction on the various factors affecting the labor income share are not consistent, and lack of theoretical support. This paper will focus on the three variable, including capital deepening, technological progress and globalization, study deeply of these three effects on the labor income share from both theoretical and empirical, to clarify the main factors accounting for changes in labor share; second, using dynamic panel model labor income accounted for the analysis of factors affecting the labor share, and select the system GMM estimation method, so more information contained in the data are used, and making a more meaningful conclusion.Also, because our income approach GDP accounting system changes in 2004, after the data are not consistent, in order to avoid bias in the model fitting stage, only selected labor income data prior to 2004. This deficiency remains to be further studied.