Study The Change Of The Labor Income’s Percentage Of GDP In The Process Of Guangdong Province Economic Growth

This paper discussed the change of the labor’s income percentage of GDP during theeconomic growth process in Guangdong province from the factor distribution angle. Firstly,after compared the situation of the labor’s income percentage of GDP between China andother developed countries, I found that the situation in most developed countries is stable anddeveloped countries’ percentage are higher than Chinese. Secondly Guangdong province’ssituation is similar with Chinese. The whole tendency is decline, which is not very normal. Sothere is need to study the reason behind the situation. Considered the industrial structure ofeconomics、the organic composition of capital、the labor law and the labor market of Chinese.We founded that the change of the industrial structure during the past years would lead todecrease the labor income’s percentage. But the chief reason is the percentage reducing ineach industry, not the whole changes of industrial structure. The increasing of the organiccomposition of capital caused the labor income’s percentage to decline. Guangdong provincesituation explains that reason. There were high rate of investment and net export in GDPduring last several decades. Labor laws could protect worker’s profit to be invaded. However,Chinese labor law is not perfect, which means that that couldn’t do well when refer to workers’profit. So that would leads to labors income can’t increase currently. Lastly, considered thetypical dual economic structure in China, the level of urbanization is still low. There are lotsof surplus labors in country, which causes the labor market to be the situation of supplyexceeds demand. That situation will directly decide the wage’s level of workers. Besides, theunbalance structure of Chinese labor market——Graduates of college confront seriousjobbing stress after the increase enrollment of Chinese high education, which means the labormarket of college graduates is also be in supply exceeds demand. That situation is not good toincrease the labor income percentage in GDP too.Finally, after study the connection between labor’s income percentage of GDP with thepercapita disposable income and the final consumption percentage of GDP, we concluded thatthe decrease of the labor’s income percentage of GDP could lead to decline the percapitadisposable income and the final consumption percentage of GDP. So it is very necessary toincrease the labor’s income percentage of GDP to make sure our economy to developsustainable and stable.