A Study Of Labor Income Share In Primary Distribution

With the implementation of the reform and opening-up policy and the development ofsocialist market economy,China has gradually turned from planned economy into marketeconomy.Affected by that,China’s distribution pattern has changed a lot.After primarydistribution,national’s income can be separated into three parts:labor share,capitalshare,and tax for the government.Abundant stu dy at home and abroad show that,for mostcountries and regions around the world,labor income share in national’s income isdeclining in recent decades.This obvious decline phenomenon catches academia’sattention,and scholars have done numerous relevant research,from which a lot ofconclusions have been drawn.For the decline of labor income share can arouse a serious ofsocial problems,many scholars and organizstions have put forward explainations for thedecrease and corresponding solutions.Though numerous study on regional difference and the trend of labor income share hasbeen done,there is little research on effect factors for labor income share from regionaldifference angle,and there ie even less research on effect factors for labor income sharewith empirical instruments.In addition,many issues havn’t reach a consensus amongacademia.For all that reasons,This thesis will build a model on panel data to study effectfactors for labor income share and regional difference of labor income share,and doempirical study on these effect factors.The empirical research shows that, regional difference do have impact on regionaldifference angle,and labor income share in central region and western areas of China isnotly higher than that of estern areas.The higher an economy’s primary industry share,thegreater its labor income share,and with the industrialization trend,China’s labor incomeshare drops at first,but increases afterwards,which shows a U pattern.Investment ratealso abviouly has impact on labor income share.Enterprises’ tax burden affects laborincome share adversely.Last but not least,the more developed an economy,the lower itslabor income.