The Empirical Study On Labor Income Share Of Zhejiang Province

A period of time, on the one hand the rapid development of China’s national economy, from central to local, GDP and fiscal revenue has continued substantial growth; the other hand, preached the shares of labor income continued to decline, slow growth in disposable income. This contrast causes great concern to the world. In this paper, Zhejiang Province, attempts to explore this issue.This article take Zhejiang Province as an example, attempts to carry on the discussion to this question. The paper first through has carried on the analysis to the shares of labor income change’s mechanism, based on this conducts the empirical study to the Zhejiang Province shares of labor income. In the analysis, the paper has carried on the decomposition to the shares of labor income’s rate of change, obtains three primary factors:The coefficients, the average per person capital and the essential factor deviation technology advancement, at the same time, the utilization "the tendency least squares method" carries on the reckoning to Zhejiang Province’s work elasticity, and has carried on the analysis to the Zhejiang Province’s shares of labor income change during 1985-2007 year.Through studies the Zhejiang Province shares of labor income, we has concluded: The average per person capital grows can enhance the shares of labor income, but the coefficient is bigger than 0 is smaller than 1 which reduced the capital to the shares of labor income forward drawing function,and thus caused the Zhejiang Province shares of labor income to drop the most main reason is the essential factor deviation technology advancement. Various yearly averages had the work to save the technology advancement, affected to the shares of labor income’s negative growth. Through the Zhejiang Province shares of labor income determining factor’s regression analysis,we obtained that through enhancing the Private enterprise to invest accounts for the total investment proportion, the average per person capital storage quantity to be possible to enhance the Zhejiang Province shares of labor income, but the industrialization advancement sped up, FDI as well as factors and so on work deviation technology advancement reduced the Zhejiang Province shares of labor income, Zhejiang Province’s industrialization advancement has a greater impact on the shares of labor income influence, however the Provincial average per person capital storage quantity was relatively small to the Zhejiang Province shares of labor income influence.Based on the above analysis, this article proposed to corresponding policy suggested:Must first break the shares of labor income to drop "the vicious circle", strives for the growth in the stable foundation; Simultaneously should take the technical structure, develops the capital to save the technology advancement moderately; Must further enhance to the cities mid and low earning community’s income level, cultivation and expanded medium income community; Finally we shall strengthen the execution macroeconomic regulation and control to the division of income, and speed up the improvement of government functions.