Re-estimate Of China’s Labor Share And Comparison With The United States

During30’s years of reform and opening up, China has achieved incredible rapid economic growth and creative miracles. However, the structural imbalances among the initial distribution have become increasingly prominent. In particular, the proportion of employee’s compensation has suffered a declining trend.However, the outcome of the proportion of employee’s compensation depends on the statistical methods. But we didn’t get to the same view about this method. The international comparison has different statistical caliber. This paper discussed on this issue from three aspects:(1) Correct the measurement of the share of employee’s compensation from adjusting the proportion of proprietor.(2) Compare the share difference between China and the United States from a static perspective.(3) Analysis the both countries’reasons of fluctuations from a dynamic perspective. We come to three conclusions after studying:firstly, China’s share of employee’s compensation shows a notable difference from different statistical perspectives, but the trend is basically the same. Secondly, the structural difference of share of employee’s compensation between China and the United States is significantly larger than the data itself. Lastly, China’s fluctuation dues to changes in industrial structure, while for the United States, it’s mainly because the biased technological progress within the industrial effects.