The Impact Of Industrial Intelligence On China’s Labor Income Share

Under the guidance of "made in China 2025" strategy,China is committed to promoting the transformation of industrial intelligence.The phenomenon of "machine replacing people" has become a common practice.The industrial system and social production mode are changing,which has a huge impact on China’s national income distribution pattern.In this regard,based on China’s provincial panel data,this paper analyzes the impact and mechanism of industrial intelligence on China’s labor income share,so as to provide empirical support for effectively coping with the national income distribution problems brought about by the development of industrial intelligence.Firstly,this paper reviews the relevant literature and theoretical basis of the impact of technological progress and intelligence on labor income share.Secondly,based on the construction of industrial intelligence index and labor income share index,the paper analyzes the status quo of industrial intelligence and labor income share.Then,based on the theoretical model,this paper analyzes the impact direction of industrial intelligence on labor income share,and summarizes the path of industrial intelligence on labor income share from three aspects of aggregate demand effect,productivity effect and wage rate effect.Thirdly,it constructs fixed effect model and intermediary effect model of industrial intelligence on labor income share,empirically analyzes the impact of industrial intelligence on labor income share and its way of action,and carries out endogenous test and robustness test.At the same time,it makes heterogeneity analysis based on industrial intelligence degree,geographical location characteristics and the impact of 2008 financial crisis.Finally,the paper puts forward the policy suggestions of coordinated development between the application of industrial intelligence and the increase of labor income share.The results show that: on the whole,industrial intelligence will significantly reduce the share of labor income in the study period,and this conclusion is still valid after alleviating the endogenous problem and a series of robustness tests.Total demand effect and productivity effect play a part of intermediary effect between industrial intelligence and labor income share,which shows that industrial intelligence can reduce labor income share by replacing labor employment and improving labor productivity.The wage rate effect shows a masking effect between industrial intelligence and labor income share.This behavior will mask the negative effect of industrial intelligence on labor income share,and further analyzes the reasons for the masking effect of wage rate effect.The results show that this is mainly because the development of industrial intelligence has a skill premium effect,which increases the demand for high skilled labor and improves the quality of labor its average wage.Heterogeneity analysis shows that industrial intelligence has a significant negative effect on the share of labor income in high industrial intelligence regions and eastern regions;taking the 2008 financial crisis as the time point,the empirical results show that industrial intelligence has a significant negative effect on the share of labor income after the 2008 financial crisis.According to the above conclusions,in order to prevent the further reduction of labor income share,we should take corresponding safeguard measures in the process of promoting industrial intelligence.