Research On The Differentiation Of Factor Income Share In Different Types Of Industries

Income distribution,closely associated with national economy and people's livelihood,economic development,and social stability,has been widely concerned.For a country,enterprise constitutes the pillar of economic development and provides guarantee for human's material and spiritual comfort.Thus,enterprise's factor income distribution structure has a significant influence on social stability and economic development.To analyze the difference of factor income share between different types of enterprises can help to develop a more comprehensive understanding of factor income distribution theory from a micro perspective and provide a basis for the reform of national distribution system.Firstly,from the perspective of market type,enterprises fall under monopoly industries enterprises and competitive industries enterprises.The empirical analysis finds that labor income share in monopoly industries enterprises is lower than the competitive industries enterprises.Accordingly,monopoly industries enterprises are higher than competitive industries enterprises in terms of capital income share.This suggests that the labor income share of monopoly industries brings down the labor income share of the whole society,and it is found that monopoly influences company's factor income share mostly.Secondly,under the same market environment,labor income share in state-owned monopoly enterprises is higher than non-state-owned monopoly enterprises,and its capital income share is lower than non-state-owned monopoly enterprises.The result shows that ownership system influences factor income share of monopoly industries enterprises mostly as well.Similarly,the labor income share in state-owned competitive enterprises is higher than non-state-owned competitive enterprises,and its capital income share is lower than non-state-owned competitive enterprises.It is also proved that ownership system influence factor income share of monopoly industries enterprises mostly.Finally,we utilize Oaxaca-Blinder decomposition method to analyze the difference in factor income share between the two types of enterprises.The findings reveal that monopoly contributes 42.8% to the difference of labor income share between monopoly and competitive industries enterprises,and 41.8% to the difference of capital income share.Ownership system contributes 62% to the difference of labor income share between the state-owned and non-state-owned monopoly enterprises,and 66% to the difference of capital income share,respectively.Meanwhile,ownership system contributes 48.2% to the difference of labor income share between monopoly and competitive industries enterprises,and 32% to the difference of capital income share.It turns out that ownership system contributes more to the difference of factor income share between state-owned and non-state-owned monopoly enterprises than that between state-owned and non-state-owned competitive enterprises.Therefore,market should be the decisive role when allocate resource in the reform,narrowing down the scope of monopoly industries,improving profit payout rate of monopoly industries enterprises.State-owned enterprises are advised to highlight protection of owner's equity,and non-state-owned enterprises are supposed to lay more emphasis on protection of laborers for the sake of fair social distribution.