The Institutional Interpretation Of China Labor Income Proportion Change:1952to2009

This paper explains the change of China labor revenue to GDP. The contract isthe basic unit of the institution analysis as well as the point-cut of creating this paper.This paper firstly accounts the China factor distribution construction by means of theBack Push Expending from1952to2009. I discover that the proportion of the Chinalabor income presents the changing of inverted U curve from1952to2009.The control of contract is divided into two phases: controlling before signing thecontract and controlling after signing the contract. The change of China labor incomein proportion is mainly determined by the controlling after signing the contract. Inother words, it is determined by the configuration of residual control rights. Accordingto the governing after no sign model of the main labor contract, the development ofChina economy is divided into three different historical periods and the writerinterprets the change of the labor income in proportion from1952to1978with thetheory prediction method. The years from1952to1978were the period of Chinaplanned economy. China labor contract was mainly the official capital-led laborcontracts. The contract provides safe-guard for the individual by the country and it isa kind of lifelong risk-free labor contract and the residual control rights of the contractare mastered by the organization. The labor income theoretically regard as the level ofwages which can be degenerated as a means of subsistence. The labor incomeaccounted for a relatively low proportion of about52%in a long period. The yearsfrom1978to1955were the period of the contracted economic. After the reform andopening-up policy, the labor contract was turned into the co-existing contract of thenation, peasant household, household of individual business, small private enterpriseand the township enterprise. The main labor contract is the contracted responsibilitysystem. Comparing to the other labor contract of the national contract, in this type ofcontract, the residual control rights of the laborers have been improved so that thelabor income share increased as well as less volatile. The period of the years from1996to2009is the perfecting stage of the socialist market economy. The employmentcontract of the private enterprise develop in a rapid speed and has formed variousmodel, having increased the opportunity of the laborer participating the marketproduction, and then the absolute value of the labor income in proportion has beenelevated. Meanwhile, due to the reforming of the national enterprise, the number ofthe lifelong contract was greatly deduced and the capital-led labor contract was themainstream. The capital side in the governance of the contract is overwhelmingly dominated by the rapid decline in the status of the rights of workers. The labor incomeshare fall—mean of52%. According to the characteristics and the proportions ofdifferent labor contracts in various stages of this paper, the writher deduces the changein proportion of the labor income in various stages and discovered that the change inproportion of the real labor income was basically corresponded with the writer’sdeduce.To further validate the interpretation of this article, the writer carries out thequantitative analysis with the macro data of the statistical yearbook and micro data ofthe pubic company for deducing the paper and all demonstrates the deduce andproved that the interpretation of this paper was right. At last, from the macro-institutional environment, governance model of the contract and individualideological point of view, this paper has proposed the relative policies and advices.