The Influencing Factors Of Labor Income Share And The Differences Among Regions

Before and after the 1980s, the labor income share of many western countries changed from up to down, causing the theory research of the changing trends and reasons of the labor income share. After reform and opening in China for more than 30 years of rapid development, the economy continue to expand, but in recent years the labor income share is lower than the international level and trends to decline, which may bring a series of negative influence.This paper takes the influencing factors of labor income share as key point, on the basis of reviewing the literature at home and abroad, using economic theories and knowledge to define and measure the labor income share, and analyzing the mechanism of the change, using the provincial panel data of our country to do the empirical analysis and systematic research on the influencing factors of labor income share, and then dividing the total sample into eastern and midwestern parts according to the regions and doing the empirical analysis respectively, so as to find the differences in the influencing of labor income share among regions, finally making conclusions and policy recommendations according to the theoretical analysis and results of empirical test.The empirical results show that capital-output ratio, technological progress, bargaining power of laborer, degree of nationalisation, industrial structure, degree of opening, the level of economic development and the degree of government intervention have a significant impact on labor income share, and there are some differences in the influencing factors among different regions. Based on these results, the government should start from the transformation of the mode of economic development, optimize industrial structure and trade structure, consummate the system and promote human capital accumulation, promote the movement of labor income share to the upward channel as soon as possible.