The Effect Research On Technical Bias Labor Income Share Expanding The Middle Income Groups

With the development of economy,the problem of unequal income distribution has become increasingly serious,the proportion of middle income group is relatively low,and the "M type" of income distribution structure has become increasingly obvious.Expand the middle-income groups,and build "Olive-shape" income distribution structure has become one of the major problems of Chinese social economy.Middle income group is mainly rely on labor income,the main source of the economic development is changing from factor inputs to the technology progress,and technical progress exists factor bias.Therefore,the key to increase the amount and proportion of the middle income group is to improve labor income share,and the changes of the labor income share mainly affected by the technological progress bias.Only when technological progress towards labor factor,technological progress can cause the increase of labor income share,and then improve the scale and proportion of the middle income groups.In view of this,this article from the perspectives of technological progress bias,researches that technical bias labor income share enlarge the effect of middle income groups,so as to expand the middle income groups provide a new vision and new idea,effective and steady expansion of middle income groups,the formation " large in the end,small in the middle " of "Olive-shape" income distribution structure.The paper in reference to the international standard and given that China economy development imbalance in urban and rural and the region,with income levels as the main criteria for defining the middle income groups,between the median incomes of 75% to 125% of the population as the middle income group identification standard,to measure China’s rural and urban scale and proportion of the middle income groups.Set up a technical bias indicators by using CES production function,the labor income share is decomposed into technical bias labor income share and element configuration bias labor income share,reuse the lorentz curve research that technical bias labor income share affect internal mechanism of residents’ income level and the proportion,as the theoretical on the empirical analysis of middle income group.Then,using the parameter estimation method and non-parametric estimation method to estimate the income distribution of urban and rural residents,constructing M curves calculated the proportion of middle income groups,and construct "the standardized supply side system" measure technical bias labor income share,and the comparative analysis on current situation.Again,using the time series data and the Chinese provincial panel data,building the empirical analysis of measurement model,using the frontier econometric analysis method,empirical analysis and compared on the influence technology bias labor income share to the proportion of the middle income groups.On this basis,from the angle of technological progress model,the detailed analysis the cause of technology bias labor income share.Finally,through the systematic and comprehensive analysis,in view of the research conclusion of this paper and the current China’s actual situation,increase the amount and proportion of middle-income groups put forward the policy Suggestions.The paper main research conclusions are as follows: first,the residents’ income distribution of urban and rural is right-skewed,fat-tail features,significant difference with normal distribution.The proportion of low income groups and high income groups in rural and urban are increased,while the proportion of middle income groups is shrunk,presents a significant "M type" of the income distribution structure.Second,the range of China’s middle income groups is expanding,but the small scale,low proportion,and poor stability,"Olive-shape" income distribution structure has not been formed.By the location and shape of M curve of income distribution,found that raise the proportion of the middle-low income group has become the key to enlarge the proportion of urban middle income groups,and raise the proportion of middle-high income groups has becomes the key to enlarge the proportion of rural middle income groups.Third,China’s overall performance for capital bias technology progress,technical bias is negatively related to the technical bias labor income share,and the changes of the labor income share is mainly caused by the change of technical bias labor income share.The labor income accounted for about 70% in the constituents of the residents’ income,excessive labor income gap becomes the main reason for widening income gap between different groups.Fourth,the only technology towards labor,technical bias labor income share will expand the scale and proportion of the middle income groups,will narrow the scale and proportion of the low income groups,the impact on middle income group is greater than the impact on low income groups,and there were significant differences between regions.Fifth,should continue to develop the economy,raise the proportion of higher education,to speed up the urbanization level,at the same time,adjust and optimize industrial structure,but should pay more attention to the quality of urbanization and the rationality of industrial structure,make the income distribution gap narrowed,expand the scale and proportion of the middle income groups,build " Olive-shape " income distribution structure.Sixth,from the angle of technological progress model,found that the cause of technology bias labor income share has technology innovation,technology introduction and technology imitation.Different patterns of technological progress has different impact on technical bias labor income share.Among them,the technology innovation influence on technical bias labor income share is biggest,the technical innovation promote technological progress towards labor,technical bias labor income share improved,enlarge the proportion of middle income groups.Therefore,to increase the proportion of middle income groups,through technical innovation to promote technological progress towards labor,technical bias labor income share play positive role for moderate income group.