Laborers Remuneration Share Trends Of Research In Our Country

Reasonable labor income share is an important condition for economic andsocial sustainable and healthy development. Since the mid-1990s, the labor incomeshare of China has changed that is not conducive to the laborers. The labor incomeshare consistently lowers, which has produced many adverse effects on economic andsocial development: social reproduction is difficult to be carried out smoothly,aggregate supply and demand is imbalance, the mode of economic development ishard to change, society is instability and even people cast doubt on China’s reformand socialist orientation, and so on. Against this backdrop,“the report of17thNational Congress” has raised that “we will gradually increase the share of personalincome in the distribution of national income, and raise that of work remuneration inprimary distribution”, and “Twelfth Five-year Plan” proposal has put forward “theprogressive realization of people’s income growth and economic developmentsimultaneously, laborers compensation growth and labor productivity increasedsynchronized”. The labor income share is increasingly becoming a problem ofcommon concern of the government, academia and the public.Based on the research of some domestic and foreign scholars for the laborincome share and some of the classical theory, in this paper, I have made a study indepth for the changes of the labor income share, sort out and analyzedlong-term changes in trends and causes of the United States, Britain, Japan and SouthKorea，and made a reasonable judgment to China’s labor income share level. On thisbasis, combined with China’s national conditions, I have analyzed the impact ofchanges in China’s labor income share factors.Based on government perspective, Ihave put forward some suggestions to maintain a reasonable share of laborerscompensation.The paper structure is as follows:Chapter Ⅰ, Introduction. This chapter provides an overall summary of the paper,which introduces the background and significance of the topics, summaries in detailresearch findings of the domestic and foreign scholars in the field, finds out currentresearch situation and tracking direction of domestic and foreign scholars in the field, specifies research content, research ideas, research approach, research findingsand research innovation.Chapter Ⅱ, the theoretical basis of the study. This chapter sorts out the researchof classical economics, neo-classical economics, Marxist economics and Keynesianeconomics for the labor income share, and defines some basic concepts to laborersand laborers compensation share, and establishes the theoretical basis which Iresearch.Chapter Ⅲ, the change trend of China’s labor income share.This chapterdescribes data sources of the metering labor income share, measurement methods,measurement methods of this study. From different perspectives which includethe income approach of GDP labor income share, depreciation of fixed assets, taxeson production and operating surplus, the income approach of GDP of laborremuneration in the first, second and tertiary industry and so on, I describe the datachange of the labor income share trend in China from1978to2007. In particular,I use the international methods to adjust China’s labor income share, and theseshare will be adjusted for the share of compensation of employees. This lays thefoundation for comparing with foreign. Finally, I have analyzed the mechanism ofchanges trend in China’s labor income share.Chapter Ⅳ, the comparative analysis of labor income share. From many angles,this chapter describes the situation of the United States1929-2010share ofcompensation of employees changes, and analyzes the run trends and causes of shareof employees compensation in the United Kingdom, Japan and South Korea. Aftercomparing with those countries, I find the share of China’s labor income share at alow level steady state.Although the difference is smaller paralleled with Japan andSouth Korea, that compared with the United States and Britain gap is great.Chapter Ⅴ, the roots of the low labor income share of China. In the early stagesof the market development, capital is scarce and private economy excessively pursuitof capital. In the change of industrial structure, the secondary industry is too high, andunlimited labor supply and labor and capital force imbalance have weakened laborers’status, and so on. All of these are of critical importance to the reduction of the laborincome share.Chapters Ⅵ, countermeasures of reasonable adjustments on the labor incomeshare of China.This chapter sorts out the governmental functions of several developed countries adjustments on the labor income share, and proposescountermeasures from these aspects,such as promoting the effective transition ofgovernment, reinforcing development of the private economy, upgrading industrialStructure, forming normatively labor and capital agents, advancing the balance ofpower both employers and employees.Chapter Ⅶ，the forecast of the change tendency of labor income share andconclusions. This chapter’s main content：I can infer that labor income share will begradually improved in the Twelfth Five-year Plan and in the later because of thetendency of labor supply in favor of the employee，the raising consciousness thatlabors maintain their own rights and interests，the external pressure and internal forcesthat government keeps reasonable labor income share，and so on. Last，I have asummary of the conclusion and deficiency of my paper.The innovation of the thesis:Topics of research：The Central Government has put forward “increase the shareof personal income in the distribution of national income, and raise that of laborremuneration in primary distribution”and“achieve residents’ income growth andeconomic development, growth and productivity of Labor remuneration increasesynchronization”，but the overall effect is not obvious，especially lack of effectivecountermeasures to increase labor income share. Based on the perspective ofgovernment function，my research puts forward the policy suggestions to provide afeasible train of thought in increasing labor income share.Methods of research: I draw lessons from the analysis method of industrystructure in labor share which Solow（1958）put forward to analyze the influence ofeach industry laborer share to the total remuneration of labor share, and theinternational adjustment method of the share of compensation of employees or thelabor income share to adjust the labor income share in our country. Meanwhile，I havemade a longitudinal research from multi angle on labor income share during theUnited States, Britain, Japan and South Korea，which lay a foundation to correctlyjudge the labor income share in our country.Conclusion of research：First，it runs parallel between the increase of the share ofcompensation of employees and the stability of the labor income share at a low level.Second，the present situation of the stability at a relatively low level is due tocomprehensive effects of multiple factors. Third，there should be a relationship between the level and the reasonable degree of the labor income share. Fourth，governmental functions’ positioning accuracy is key to keep labor income sharereasonable. Our country is a market economy country that is dominated bygovernment，so the unreasonable labor income share has something to do with the toomuch government intervenes.