A Study On The Uncertainty Of Import Intermediate Trade Policy And The Impact Of Enterprises’ Share Of Labor Income

Since 1992,China’s share of labor income has been on the rise as a whole,but by 1996,the share of labor income reached the highest stage,and then it has been decreasing every year.In the process of continuous decline in the share of labor income,the degree of trade liberalization has gradually increased after China’s entry into the WTO,and the change of import tariffs has gradually approached zero from the previous high uncertainty.This paper takes China’s entry into the WTO as a quasi-natural experiment to study the impact of the uncertainty of import intermediate trade policy on the share of labor income of Chinese enterprises.By using the industry import tariff data in the WITS trade database and the enterprise-level data from 1998 to 2007 in the Chinese industrial enterprise database,the uncertainty index of import intermediate trade policy is constructed by the tariff difference measurement method as the core explanatory variable,and the labor income share is calculated by the enterprise-related variables in the industrial enterprise data base,and the double difference method is used for empirical analysis,This paper studies the impact of the uncertainty of import intermediate trade policy on the share of labor income of Chinese enterprises.From the empirical results,after China’s entry into the WTO,the uncertainty of the import intermediate trade policy has decreased significantly and the share of labor income has increased significantly.Parallel trend test,sequence correlation and other robustness tests are carried out to further prove the significance of the empirical results.In addition,the share of enterprise labor income is decomposed into wage rate and labor productivity,and then the mechanism is tested respectively.The result shows that the decline of the uncertainty of the import intermediate trade policy will make the wage level decline and will also reduce productivity by restraining the innovation level,and the wage rate effect is less than the productivity effect.As the wage rate effect is positively correlated with the share of labor income,and the productivity effect is inversely correlated with the share of labor income,the decline in the uncertainty of the import intermediate trade policy will increase the share of labor income of enterprises as a whole.In addition,this paper conducts a sub-sample regression on the productivity,labor factor input and enterprise type of enterprises.The results of the heterogeneity analysis show that the promotion effect of the uncertainty of the import intermediate trade policy on the increase of the share of labor income of enterprises is more obvious in enterprises with high productivity,non-labor-intensive enterprises and foreign-funded enterprises.Combined with relevant empirical analysis,this paper also provides some ideas for reference on how to improve the living standard of our people at the level of international trade.Although China’s import and export tariff level is at a relatively low level,there are still many non-tariff barriers under the influence of the domestic epidemic,the Russian-Uzbekistan conflict crisis,and the overseas monetary tightening policy,and the uncertainty of China’s import trade policy is increasing.Therefore,our government should continue to reform and open up,advocate free trade,deepen cooperation with other countries,and have a positive impact on the increase of labor income share.In addition,enterprises need to pay more attention to the skill training of talents,and the government needs to support enterprises’ attention to talent introduction and innovation level development,build a good platform for enterprise development.