Research On The Influence Of Distribution According To Labor On Industry Resource Allocation

China’s economy has shifted from high-speed growth to high-quality development.It is in the crucial stage of transforming the development pattern,optimizing the economic structure and transforming the growth drivers.How to improve the efficiency of resource allocation has become an important topic.Labor allocation is of primary importance in resource allocation,and the incentive to labor becomes particularly important.The Fourth Plenary Session of the 19 th CPC Central Committee put "distribution according to labor as the main body,and a variety of distribution methods coexist" into the framework of the basic economic system,which guarantees incentives for labor.This paper discusses the impact of distribution according to labor on resource allocation from the perspective of motivating workers and optimizing capital structure and then we carry out corresponding empirical research.Similar empirical studies are few in the existing literature.On the basis of reviewing the pertinent literature and theories at home and abroad,this paper analyzes the current situation of distribution according to labor and resource allocation in China,and then investigates the mechanism of distribution according to labor’s effect on resource allocation from two perspectives including incentive effect on workers and the optimization effect on capital structure.Then we measure the degree of labor mismatch and capital mismatch in 18 major industries in China.On this basis,an empirical study is conducted using Chinese industry panel data from 2004 to 2018 to verify the impact of distribution according to labor on resource allocation,and the heterogeneity of this impact is examined from aspects of industry type and industry monopoly degree.The main conclusions are as follows:(1)Sticking to the principle of distribution according to labor is beneficial to optimizing labor allocation.Improving the proportion of labor remuneration,optimizing the structure of labor remuneration and the income structure of different workers have positive effects on optimizing labor allocation.(2)Optimizing the structure of industrial labor remuneration is conducive to the rational allocation of capital.(3)In the secondary industry and the tertiary industry,adhering to the principle of distribution according to labor can promote the optimization of labor allocation,and the promotion effect in the secondary industry is significantly greater than that in the tertiary industry.And in the secondary industry,the more reasonable the labor remuneration structure is,the more favorable it is to optimize the capital allocation.(4)Distribution according to labor has a greater impact on optimizing labor allocation in monopoly industries than in non-monopoly industries.Therefore,we have learned that consolidating the dominant position of distribution according to labor is conducive to optimizing the allocation of resources,optimizing the structure of labor remuneration,and implementing the concept of people-centered development.In addition,distribution according to labor promotes the rational allocation of resources through stimulating labor and optimizing capital structure,which is conducive to the realization of high-quality economic development in China.