Study On The Evolution And Influencing Factors Of Labor Share Of Henan Province

With the economy rapid growth after China’s reform and opening up for30years, China has become the world’s second-largest economy in2010. Along with the economic development, our country structural contradictions emerge constantly, and also one of the prominent problems is that the income distribution structure is not reasonable. In recent years, the national income distribution pattern presents distorted and unbalanced situation, after1995, the labor share in China presents a declining tendency, in especially in2007the level reached lowest, and the labor share in Henan province since1994has entered the downward path. Let ordinary people enjoy the fruits of economic development has become a social consensus. The15th National People’s Congress proposed the policy of "by allocation of factor of production", and the18th National People’s Congress’s report emphasized that" raise the proportion of labor remuneration in primary distribution ". Our government will make improving labor remuneration and improving the income distribution as an important measure for expanding consumer demand. Speeding up to form a reasonable and orderly pattern of income distribution, improving labor share, is great significance to our country economic development.The paper make the labor share and the influencing factors as the research objector. On the basis of tiding up distribution of elements in the income distribution theory and reviews the domestic and foreign labor income share. The result shows the changes of labor share in Henan province from1991to2011, and comparing with the changes of labor share of China to found out that the evolution of the labor income share of Henan province. On this basis, through the theoretical analysis of the impaction on labor share mechanism, using regression analysis method makes an empirical analysis on nine influencing factors of labor share of Henan province, indicates that the main factors affecting labor share change in Henan province, and put forward policy suggestions.The empirical result show that nationalization, capital output ratio, government spending and human capital and level of intervention on economy can significantly impact on the labor share of Henan province. But the industrial structure, the degree of opening to the outside world, the labor productivity in Henan province labor share give limited impacts. And influencing factors in Henan province labor share are different from the whole and other various areas in China. Globalization, industrial structure has significant effects on our country and the influence of Henan province is limited, and the negative impact of fiscal spending and human capital investment is different from national conditions. Based on the reality of Henan province, the article proposes some suggestions for adjusting the labor share, such as, adjusting the industrial structure, attaching great importance to the human capital investment, improving the labor mobility mechanism, promoting the land circulation, improving the quality of investment promotion and capital introduction and so on.