Research On The Impact Of Chinese Manufacturing Upgrade On Income Distribution

After China's promotion of the manufacturing industry upgrade,the trend of continuous expansion of the income gap has been contained.In order to ensure the smooth progress of the manufacturing industry upgrade while narrowing the income gap,it is of great significance to further explore the impact of the manufacturing upgrade on income distribution.As manufacturing upgrades will bring a series of changes to the employment structure,consumption structure,and technology structure,It is not clear about the direction of these changes and how these changes further affect income distribution,so this article studies the above issues from both theoretical and empirical perspectives.This article first analyzes theoretically the mechanism by which manufacturingupgrading affects income distribution.The adjustment of the industrial structure will have an impact on the employment structure.The upgrading of the manufacturing industry,as an important part of the adjustment of the industrial structure,will also affect the employment structure in China.Usually,the upgrading of manufacturing industry will bring about the substitution effect of capital and technology on labor force.However,since China's talent reserves cannot meet the demand for high-end labor force in manufacturing upgrading,China's manufacturing upgrading is accompanied by the training of labor force.The training process has improved the skill level of the labor force,increased the income of this group,and narrowed the social income gap.In addition,the upgrading of manufacturing industry has promoted technological progress.Technological progress has increased the output capacity of manufacturing.With certain resource endowments,an increase in output capacity will increase manufacturing output and reduce the price of goods in the consumer market.The lower-income group obtains higher utility from the price reduction than the high-income group,which reduces the income gap.However,due to the lack of duration and coverage of the training of labor force by enterprises,the improvement of labor force quality and education level is limited,and although technological progress will reduce the price of goods,it will also accelerate the speed of product replacement.The income effect obtained from it is also relatively limited,so the impact of manufacturing upgrading on narrowing the income gap should also be relatively limited.Then the article uses China's annual data from 2006 to 2018 to establish an intermediary effect model,and conducts an empirical analysis on whether and how manufacturing upgrades affect the Gini coefficient:(1)The overall upgrading of the manufacturing industry has narrowed the income gap,but the narrowing is relatively limited;(2)Improving the level of education in China has a positive impact on the promotion of manufacturing upgrading and narrowing the income gap;(3)Restricted by talents and technology,the upgrading of China's manufacturing industry is relatively slow.Based on the above conclusions,this article proposes the following countermeasures on how to promote the upgrading of the manufacturing industry and reduce the income gap:(1)The government should continue to vigorously promote the upgrading of the manufacturing industry;(2)Focus on higher education,improve the quality of labor force and education level;(3)Encourage enterprise technological innovation,and give certain preferential policies to enterprise R&D behavior.