The Enterprise Factor Income Distribution In China Under The Perspective Of Right Configuration

“A citizen would worry about the uneven distribution of wealth and instability of the society rather than poverty”. The issue of income distribution has received much attention since the ancient times, and its fairness and justice is not only a basic human moral problems but also problems of social systems and public orders, involving economic development and people’s livelihood improvement and social stability. The purpose of this paper is to research the income distribution of Chinese enterprises’ factors from the perspective of right configuration. Rights allocation is the core of the system problem as well as the breakthrough point of the paper.Firstly, on the basis of criticizing the neoclassical theory of factor income distribution, the paper establishes the theoretical foundation and basic ideas for the rights allocation to affect enterprises’ factor income distribution, and this rights disposition includes participation right, income right and guarantee right. Then, this paper divides the enterprise’s factor income distribution into three levels, respectively labor factor income, capital factor income and government income, and calculates income distribution of China’s enterprise according to the total, nature of industry, the scale, nature of ownership and the area, basing on the China industrial enterprise database in 1998-2007, in order to understand the present situation and main problems of the factor income distribution of Chinese enterprises. The empirical research lies in analyzing the impact of different configurations between the labor side and the capital side on enterprises’ factor income distribution. Finally, combined with the China’s reality and the previous conclusions we made, the paper proposes the principle, general thought and realization path for the right disposition to reform enterprises’ factor income distribution, and moreover put forward three proposals for the state-owned enterprise’s factor income distribution system reform. Five conclusions have been achieved through studies: First, the reform of enterprise factor income distribution should focus on the large-scale state-owned monopoly companies. Through calculating factor income distribution of Chinese enterprise from industry, scale, ownership and district to indicate the factor income distribution, especially for labor factor and capital factor. The more intensive factor income proportion changes in a monopolized industry, large-scale enterprise, state-owned enterprise and the enterprise in the Midwest area, the faster labor factor income proportion declines, and the capital factor income proportion increases. Second, the right allocation has a significant influence on the enterprise factor income distribution. The right internal allocation can be transformed into various income patterns which have different drive function for each factor and decide income of internal various factors. It can be divided abstractly into three basic dimensions: participation right, income right and security right. Participation right emphasizes equal starting point, income right emphasizes fair and rational procedure. Security right emphasizes more equitable distribution outcome. Third, workers fail to receive a fair labor income. In 2004, the calculation of Chinese industrial enterprise database indicated the average labor income is 11000 yuan per head. However, fair labor income should be 11947.43 yuan per head. There is a big difference of-947.43 yuan. Forth, the right allocation still should focus on constantly enhancing workers’ income right. Labor factors are increasingly unable to substitute capital factors for Chinese enterprises. Translog stimulation and the actual income proportion changing trend of enterprise internal factors are consistent. It shows a phenomenon that the labor factor income proportion constantly declines, but the capital factor income proportion yearly increases. It is an urgent affair to improve workers’ income right as soon as possible. Fifth, only by valuing the right allocation and make it labor-side-orientated, can the enterprise solve the problem of internal factor income distribution. Through equal rights of participation to ensure a fair starting point; through shared income rights to keep fair implementation process; through sufficient rights of guarantee to maintain fair implementation results. While, the focus of income distribution reforms is on state-owned enterprise. Government should drastically raise their hand-in rate of the profit, specially for the large-scale state-owned monopoly companies and make use of this money to improve people’s livelihood.The innovation value of our paper comparing between related literatures could be concluded to three parts. First, a systematical calculation of China enterprises’ factors income distributions with large enterprises’ micro statistics at fist time, an comprehensive investigation in the dynamic evolution of income distribution of factors of China’s enterprises, and an explicit cognition about the evolution of china’s enterprises’ factor income distribution have been made. Thus, micro proof in this area is presented. Taking government, labor and capital, as factors in income distributions is in better accordance with reality. Second, a brand new vision to relative research is provided. The intention of right allocation is the allocation inside the enterprise amongst the right of participation, income, and guarantee. Thus, a theoretical proof of reformation in institution of enterprises’ income distribution is provided. Third, this paper estimates empirically the deviation level of labor income of china’s worker in enterprises by using micro statistics of China’s large enterprises, and judge if they acquired labor income fairly, and provide micro statistics for further researches in this area. Imitating comparison between enterprises’ income distributions, by constructing a China enterprises’ income distribution of factors Translog production function model taking government into account. Furthermore, provide a new vision for further researches by examining the influence of right allocation on income distribution of factors.