| Income distribution is a fundamental issue related to people’s livelihood and wellbeing.From the perspective of the primary distribution of national income,the income share of China’s resident sector is relatively low,and the existing distribution pattern is obviously skewed towards the capital side.How to increase the share of labor remuneration in the primary distribution has become a key issue in increasing the share of residents’ income,ensuring and improving people’s livelihood.Explaining changes in labor income share from the perspective of economic globalization is a classic topic not only in academia but also in our whole society.The current globalization system has gradually evolved into a global value chain(GVC)trade model dominated by multinational corporations,and China has been deeply integrated into it,and has grown into an important participant.in the system.During this process,the production model,business philosophy,and income distribution of Chinese enterprises have undergone tremendous changes,and the possible impact on the labor income share is the focus of this paper.Specifically,this paper takes the heterogeneity of factor income distribution after manufacturing enterprises participate in the GVC division of labor as a realistic background,and attempts to examine the impact of participating in the GVC division of labor on the decline of labor income share from the perspective of the length of GVC production.This paper not only studies the internal role relationship of enterprises,but also explores the spatial spillover of adjacent enterprises and the spillover effect of star enterprises to non-star enterprises from the perspective of inter-firm relations,in order to fully grasp the changing relationship between GVC production length and labor income share,providing support for developing sound and targeted policy recommendations.In terms of theory research,this paper mainly includes three aspects:the influence of GVC production length within enterprises on labor income share,the spatial spillover of GVC production length between adjacent enterprises on labor income share,and the spillover effect of star enterprise GVC production length on non-star enterprise labor income share.Based on three aspects research,theory research provide a theoretical basis for empirical research.Above all,by referring to the Melitz(2003)model,introducing the influence coefficient of GVC,and combining with the Mcdonald and Solow(1981)labor bargaining model,through the comparative static analysis of general equilibrium,the influence of GVC production length on labor income share and its mechanism are deduced.Furthermore,jumping out of the internal perspective of enterprises and starting to focus on the spillover effect between enterprises,by extending the generalized model of Acemoglu and Azar(2020)and the technological choice model of Acemoglu(2002),it is found that GVC mainly uses technology diffusion effects and skills premium effect,and finally realizes the spatial spillover impact on adjacent firms.Finally,by referring to the optimal production model of leading firms by Antràs and Chor(2020),this paper study the spillover effect of star firms’ GVC production length on the labor income share of non-star firms;combining Caliendo and Parro’s(2015)dynamic "trade-labor market" model with Calmfors and Seim(2013)"leader-follower" model explores underlying mechanisms.In terms of empirical evidence,this paper uses data sources such as the database of industrial enterprises(CASIF),the annual database of import and export trade(CCTS),the World Input-Output Tables(WIOT)of WIOD and the UIBE GVC Index of the Institute of Global Value Chains of the University of International Business and Economics(UIBE)from 2004 to 2013,and obtains data samples through screening and matching calculations the hypotheses proposed in the previous theoretical analysis framework are tested empirically one by one.Firstly,this paper empirically test the effect of the length of GVC production on the labor income share within a firm.A panel fixed effects regression is used to conclude that increasing the length of GVC has a negative impact on the labor income share of the enterprise.The endogeneity problem must be paid attention to.This problem of the model is dealt with by choosing the firm’s innovation capacity measured by the number of invention patent applications,utility model applications and appearance applications as instrumental variables,and it is found that the endogeneity problem only underestimates the extent of the effect between the two and does not substantially interfere with the baseline findings.A series of robustness tests using various methods such as replacing core variables,changing the sample size,Tobit regression,systematic GMM regression and quantile regression also yielded consistent results with the benchmark regression,testifying the basic results are robust.At the same time,a more detailed heterogeneity test is conducted by considering different embedding chains and the heterogeneous characteristics of firms.In addition,the mediating effects model is used to examine the transmission mechanism of production length affecting labor income share,and three channels are identified:the technological progress effect,the capital deepening effect and the monopoly additive effect.Finally,according to exiting papers,the non-linear variation between the two is further explored,and the results show that there is a "U" shaped relationship between GVC production length and labor income share.Secondly,the spatial spillover effect of GVC production length on the labor income share of adjacent firms is tested empirically.The Moran indexes of labor income share and production length are calculated and Moran scatter plots are drawn to show that labor income share and GVC production length both exhibit significant positive spatial correlation.Then,the SDM model is estimated with great likelihood and it is found that the GVC embedding degree fo firms not only directly curbs the increase of labor income share within their own firms,but also plays a significant weakening effect on the income distribution of neighboring firms.In other words,when a firm increases its production length,the labor income share of adjacent firms will be decreased.The decomposition results further confirm that the indirect spillover effect is larger than the direct effect,accounting for about 88.23%of the total effect.On this basis,the channels of spatial spillover are examined,and the technology diffusion effect and skill premium effect are considered as strong mechanisms of action.Finally,expanding the analysis from the perspective of competition results among firms,it is found that increasing market concentration will boost the spatial spillover effect of GVC due to the strong spatial spillover effect.Thirdly,the spillover effect of star firms on the labor income share of non-star firms is tested empirically.the results of the benchmark regression confirm that star firms’ extended GVC production length will have adverse spillover effects on the labor income share of domestic non-star firms.Among them,state-owned firms do not suffer from significant spillover effects,while firms with lower export dependence and higher labor share suffer from a larger degree of spillover effects.The estimation results of the intermediation effect model show that the spillover from star firms to non-star firms mainly originates from the reverse labor price distortion and the demonstration imitation effect of star firms.Finally,starting from the peer behavior of income distribution of non-star firms,it is found that the extension of GVC production length by star firms is not only detrimental to the income distribution of individual non-star firms,but also curbs the cohort behavior among many firms.In particular,the peer effect among non-star firms in leading status or low-intensity competitive regions will be more hindered.The GVC production length of star firms mainly weakens the catching-up peer effect,while the following peer effect is not significantly affected by the spillover effect.The innovation points of this paper include the following three aspects.Firstly,the innovation of research perspective.It mainly includes:on the one hand,an attempt to explain the reasons for the decline of labor income share from the perspective of GVC forward production length.Considering that the source of factor income is output rather than input,the forward perspective is cut from the export perspective,which is more consistent with the research paradigm of Melitz(2013)heterogeneity model and Antràs and Chor(2021)dominant firm model,which are the borrowing theories of this paper.Meanwhile the GVC production length indicator is an optimization and improvement of the product and value added transmission step,integrating the research trends of both GVC division of labor location and GVC participation dimensions,providing better internal consistency and easier economic interpretation.On the other hand,it pioneers the study of the spillover effects of GVC distribution effects,expanding from studies confined to firm internality to inter-firm interactions,and linking geographic spatial spillovers and spillovers from star firms to declining labor income shares,which is the first of its kind in the relevant literature.At the same time,this paper further examines the moderating role played by changes in market structure on GVC spatial spillovers and the effect of star firm GVC on the cohort effect of labor income shares of non-star firms.The active exploration of these new perspectives enriches the research related to export trade,GVC division of labor and labor income share.Secondly,the theoretical model is expanded.It mainly includes three advances:(1)On the basis of Melitz’s(2003)model,the heterogeneous effect of GVC is introduced to construct a microeconomic model that includes consumers,workers and GVC producers,and is extended by Mcdonald and Solow’s(1981)labor bargaining model to examine the effect of intra-firm production length on labor income share and the mechanism.(2)Extending Acemoglu and Azar’s(2020)technology-neutral generalization model and Acemoglu’s(2002)technology selection model,we derive that there is a spatial spillover from GVC to labor income share and that this spillover mainly arises from the technology diffusion effect and the skill premium effect.(3)Using the equilibrium analysis of Antràs and Chor’s(2020)optimal production model of dominant firms,we derive the relationship between the GVC production length of star firms and the labor income share of non-star firms,combining Caliendo and Parro’s(2015)dynamic "trade-labor market "model and Calmfors and Seim(2013)"leader-follower" model to reveal the underlying mechanisms,including the labor price distortion effect and the model imitation effect of star firms.By actively expanding the classical models in different dimensions,we not only broaden the scope of application of these models,but also enrich the theoretical research on the income distribution effect of GVC.Thirdly,the improvement of indicator measurement.Above all,GVC production length at enterprise level is improved and measured.In this paper,the core indicator is obtained by micro-matching the industry-level data to achieve the micro-processing of GVC length.the larger the value of this indicator means that the more the value added is put into international production,the higher the complexity of the enterprise’s participation in GVC production,and the more it climbs up the chain,so the production length indicator reflects both the location of the enterprise’s embedding in GVC and the complexity of the embedding.In addition,this paper not only measures the basic core indicators,but also calculates the production lengths of domestic chains,traditional trade chains,and simple and complex GVC chains based on the decomposition of value chain chains.At the same time,the heterogeneous characteristics of enterprise factor intensity,ownership type,trade mode and the region and economic circle to which they belong are measured categorically,and the rich and detailed empirical research provides the basis for an in-depth examination of GVC influencing labor income share in many aspects and perspectives.Last but not least,in consideration that enterprise data are too heterogeneous,it is difficult to construct spatial weight matrices,and little literature has been conducted on firm-level spatial econometric studies.To solve this data challenge,this paper uses Python data crawling technology to obtain the latitude and longitude data of enterprises from Baidu map and construct a spatial weight matrix of 21680×21680 size to realize the spatial spillover test of GVC distribution effect,which not only enriches the GVC-related research but also expands the micro-level examination of spatial spillover research.In terms of policy recommendations,based on the findings of theoretical analysis and empirical tests,policy recommendations are mainly put forward from two aspects,macro and micro.At the macro level,it should be fully recognized that the decline in labor income share reflects the increase in the complexity of China’s overall production structure,which is an inevitable result of the country’s economic transformation and trade upgrading,but of course,this is also one of the drawbacks of China’s low-end embedding in the GVC division of labor system dominated by developed countries,so government departments should pay full attention to the possible results of income distribution deterioration when formulating relevant GVC policies,and more therefore,when formulating relevant GVC policies,government departments should pay full attention to the possible deterioration of income distribution,cultivate star enterprises more cautiously,shift from rough support to fine-guided development,and pay attention to the distinction between "outward-oriented" and "inward-oriented" star enterprises.At the micro level,Chinese manufacturing enterprises should take advantage of the new development opportunity of the dual domestic and international cycle to promote each other,keep the decoupling from GVC and gradually produce substitutes for imported intermediate inputs to increase value-added while reducing their over-dependence on GVC dominated by developed countries.At the same time,enterprises can enhance the absorption capacity of technology spillover by emphasizing the importance of human capital,and eventually transform the spillover technology into their own innovation results,which will become the intrinsic driving force to realize the climb to the top end of GVC. |
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