Study On Changing Of Labor Income Share In China Since The Reform And Opening Up

With the reform having been promoted for more than30years, China’s economy has achieved an average annual rate of10%of the rapid growth. However, the labor income share is not consistent with rapid GDP growth, but less of share in recent years., which descended from52.27%in1998, to41.49%in2010and even this proportion dropped to38.75%in2008. In the distribution of national income, the decline indicates that the economic achievements brought by the reform don’t deserve the labors. As we known, adjustment and distribution of changes of the labor share is particularly attracting in the process. To keep sustained economic growth, it is essential of the change of the initial distribution and improving the workers’ compensation. Clearly, there is imperative to probe the trends and influencing factors of the labor income share in the period of the reform.The paper bases on the data of income approach GDP, uses comparative and empirical analysis to study the trend of the labor income share in China after the reform and opening up, and compare with the income share of developed countries. We get result that our working share of income is low and doesn’t meet sustainable development requirements in china. We prove that the dual economic structure, capital-output ratio, industrial structure, employment status and opening up cause significant changes in the labor income and analyze the causation in depth through empirical analysis and multiple regression analysis model. Then, to improve the labor income share, we provide some recommendations:cancelling the institutional obstacles to promote the equitable distribution, optimizing the industrial structure, promoting the transformation of dual economic structure, developing the law conforming to the path of endowment structure and technological development, protecting workers’ rights by the law and trade union.