The Impact Of Industrial Structure Change On The Evolution Of Labor Income Share

China's economy has maintained a rapid growth for 20 years,and now has entered a new normal,to explore the new driving force has become the top priority of the healthy development of China's economy.However,distribution is a crucial factor whether it is the new driving force of economic development or the adjustment of economic structure,reasonable distribution is the motive force of healthy economic development,and the guarantee of social stability.However,in the past 40 years of reform and opening up,China's share of labor income has remained at a low level for a long time.In 1998,China's share of labor income reached the highest point of 61%,after that,China's share of labor income declined all the way,reaching the lowest point of 53% in 2007,after 2008,it began to rise slowly,reaching 55% in 2017,it is obviously a big gap,compared with about 70% in developed countries.The issue of labor income share is still a very important issue in the process of economic construction in China's reform and opening up.From the point of view of distribution system,the 15^th National Congress of the CPC put forward for the first time the combination of distribution according to work and distribution according to factors of production,the 16^th National Congress of the CPC put forward the principle that labor,capital,technology,management and other factors of production should be allocated according to their contributions,the 17^th National Congress of the CPC further proposed to increase the proportion of labor remuneration in the initial distribution,the 18^th National Congress pointed out that the remuneration of factors of production should be determined according to their to their respective factor markets,the report of the 19^th National Congress once again put forward the idea of “adhering to the simultaneous growth of residents' income while economic growth,and achieving simultaneous improvement of labor remuneration while improving labor productivity”.This series of institutional changes on income distribution were formulated with factor distribution as the core.So,compared with other countries in the same stage of economic development,what is the evolutionary trend of labor income share in China? Why did China's labor income share deviate from the upgrading of industrial structure and show a unique evolution trend? What is factors influencing the evolution of China's labor income share?Based on the above questions,we found that in the 40 years of reform and opening up in China,industrial structure has been tremendous changes in China's,as the core carrier of economic development,industrial structure changes have become an important factor affecting the distribution of labor income.Therefore,we chose to study the factors of the labor income share's evolution from the perspective of industrial structure changes.In the early stage of reform and opening up,the change of industrial structure led to the rise of the share of labor income,however,in the later period,the share of labor income declined with 10 years.At present,China is in the stage of deep development of industrialization,there are new trends in industrial structure changes,which will bring a new trend of the evolution of labor income share.This paper takes the method of the new economic history school,take the stage change of industrial structure as the main line,systematically analyses the mechanism of the evolution of labor income share.Horizontal contrastively study on the evolution of labor income share in the process of industrial structure change of international representative countries,longitudinal comparatively study on the changes of industrial structure and the evolution of labor income share in China from 1978 to 2017.Empirical test on the relationship between industrial structure and the labor income share,in different stages of industrial structure evolution,industrial structure's rationalization and upgrading,regional differences of industrial structure have different effect on labor income share.concretely,generalize as follows:First of all,define the core concept of this paper,discuss the regular pattern of labor income share evolution,the pattern of industrial structure,and the theory of the impact of industrial structure change on the labor income share.Most of the studies on labor income share by Chinese schoolars focus on the stage of decline,starting from the industrial structure itself,the effect of labor income share is decomposed into intra-structure effect and interstructure effect.This paper will present a complete trend of the evolution of labor income share in the past 40 years of reform and opening up,combine with the characteristics of industrial structure change and the rule of the evolution of the labor income share in China,try to analyze the impact on labor income share from the perspective of upgrading the ability of industrial structure optimization,and to explore its deep-seated reasons.Secondly,through the historical perspective of China's labor income share evolution in the past 40 years of opening up,it is found that the evolution presents the rule of “rising-weak fallingrising-falling-rising”,and in different historical stages of industrial structure change,the influencing factors of labor income share are different.The first stage is 1978-1983,the early period of reform and opening up,the share of labor income increased due to the improvement of agricultural productivity and the adjustment of income distribution policy.The second stage is 1984-1991,the core of China's economic reform has shifted to cities,the improvement of agricultural productivity has been limited,and the multiple distribution model has an impact on the income in the state-owned enterprises,which has caused fluctuations in the share of labor income.The third stage is 1992-1998,with the rapid growth of light industry,the relaxation of household registration system,and acceleration of urbanization,the labor income share has risen again.The fourth stage is 1999-2007,the period of China's rapid economic growth,the labor income share has been declining because of the heavy industrialization development mode and the excessive substitution of capital for labor.The fifth stage,since 2008,China has entered a new period of in-depth reform,with the rapid development of service industry,China has enhanced the ability of absorbing labor force,which affected its income share to starting rising.And more,through the horizontal comparison of the trend of labor income share of international representative countries in the process of industrial structure evolution,we found the following enlightenments: firstly,the evolution patterns of labor income share in different countries are diversified;secondly,the change of labor income share in industrialized countries presents periodic characteristics;thirdly,the change of labor income share relates to the development path of domestic industry;the possibility of further increasing of the labor income share in China.Then,this paper discusses several mechanisms of industrial structure changes on the labor income share from micro and macro perspectives.From the micro perspective,this paper found two mechanisms,which led the changes of the labor income share.The first one is elasticity of substitution of factor mechanism,in the dynamic change of industrial structure,the difference of substitution of factor elasticity leads to the transfer of labor force among industries,cause the changes in the share of labor income;the second one is the technological progress mechanism,in the initial,medium and later stages of industrialization,the technological progress is labor-biased,capital-biased and maybe skill-biased,the coexistence of several technological progress-biased types,there will be different effects on the share of labor income.From the macro perspective,three mechanisms affect the change of labor income share.The first one is dual economic structure theory,with the change of urban economic structure,the surplus rural labor force has been shifting to cities and towns,and the number has gradually decreased,until the dual economic structure of urban and rural areas has gradually disappeared,which has played a role in promoting the rise of the share of labor income.The second one is regional economic development theory,in different stages of industrial structure change in eastern,central and western China,the influencing factors of labor income share are different.The third one is institutional changes theory,institutional changes have different effects on the evolution of labor income share through three aspects: factor market,degree of market-oriented economy and opening up to the outside world.Again,on the basis of sorting out the existing literature,this paper makes the correlation analysis and empirical analysis on the influence of industrial structure changes on the labor income share.Through correlation analysis between the industrial structure changes and the labor income share.Apply panel cointegration test model,panel VAR model and impulse response function to test he correlation between them.By choosing two indicators of rationalization of industrial structure and upgrading of it.And the correlation between the changes of industrial structure in different regions on the labor income share from 1993 to 2017.The research shows that the rationalization of China's industrial structure fluctuates before 2008,and continues to improve after 2008,while the degree of industrial structure upgrading continues to improve,among which,the eastern,central and western regions present different values of high,medium and low.Moreover,the analysis shows that the improvement of rationalization and upgrading is in favor of promotion of the level of labor income share.Then,further analysis by constructing econometric models,find some factors,which impact on the labor income share,include the rationalization of industrial structure,high-grade industrial structure,economic development level,fiscal expenditure,nationalization,globalization,human capital content,urbanization ratio.And the different effect of regional industrial structure on the labor income share.And more,according to the evolution of China's labor income share trends,divide the periods of 1993-2017 into two stages with 2008 as the turning point,analyze the stage effect of industrial structure change on the labor income share.Finally,based on reality and the comparison of international countries,put forward the policy recommendations,from the perspective of industrial change.Suggestion 1: in the process of industrialization,developing countries should speed up structural adjustment,so as to avoid the decline of the labor income share or shorten the period of the decline of labor income share;suggestion 2: in the process of industrialization,developing countries can accelerate the increase of labor income share through accelerating urbanization,rational industrial distribution and coordinated regional development;suggestion 3: at the same time of the growth of service industry,pay more attention to the improvement of service industry quality,so as to promote the increase of labor income share;suggestion 4: through the construction of knowledge industry system,ensure the rationalization of labor remuneration,further promote the increase of labor income share.The innovations of this paper are as follows: firstly,it systematically analyses the evolution rule of Chinese labor income share in the past 40 years of reform and opening-up;secondly,it explores the influencing factors of the difference in the evolution stage of Chines labor income share;thirdly,by exploring the charecteristics of Chines industrial structure change,it analyses the deep-seated reasons for the change of labor income share,and measures it from the two dimensions of industrial structure upgrading and rationalization,and put forward the policy recommendations.