Study On Evolution And Influencing Factors Of Labor Share In Chongqing

Since 1995, our country‘s labor income share was declining, it's less than 40% in 2007. Although there are the data showed that in recent years our country labor income share increased, but the downward trend is still no fundamental improvement. There is no doubt that comparing with the developed countries, China's labor income share is lower. The existing studies have shown that low labor income share is bad for the running of the national economy. It not only will be greatly restrain domestic demand in China, but also enlarge the gap between rich and poor in China. Chongqing is one of the four municipalities directly under the central government in our country, and it is the national urban and rural comprehensive reform pilot area. Its economic and social development plays a very important strategic role in our country. So, the research on the income share of Chongqing has important practical significance in the economic structure transformation, the income distribution reform and the urbanization.The paper makes the labor share and the influencing factors as the research objector. Using the data from Chongqing Enterprise Survey of the Chongqing Development and Reform Commission that investigated 613 micro-enterprises, this paper reviewed the factors that affect the change of labor income from the aspect of micro economy. Through macro data, this paper analyzes the trend of the labor income share in Chongqing and contrasts it with China's labor income share. We found that the changing trend of labor's income share in Chongqing and China is very similar. Then we propose 7 hypotheses that affect the change of the share of labor income in Chongqing. And do Empirical analysis through the microscopic data. Finally, in order to improving the labor income share in Chongqing, this paper gave several aspects of policy recommendations.The results showed that the relationship between capital and labor is complementary rather than alternative. Technological advances will significantly increase labor share of micro-enterprises. Because of the tax can be passed on, the increase of the tax will be not conducive to the increase of the share of labor income. At the same time, it also found that the influence of workers for the distribution of profit is lower. In the factor market, trade union can improve labor income share. While financial constraints will have negative effects on labor income share, especially for micro-enterprises. Finally, based on the research conclusions and the reality of Chongqing, the suggestions for developing capital saving technology, establishing reasonable labor relations, paying attention to human capital, improving negotiation ability of workers, accelerating financial development and adjusting industrial structure are suggested to adjust the labor income share of Chongqing rationally.