Study On Labour Income And Economic Development Of Hebei Province

Labor income is the main source of income and affects the economic development byconsumption and investment. Since2000, Hebei GDP has been among the top, but laborincome level is in the medium level. Meanwhile, Hebei province consumption is insufficient,which eventually consumption rate has been in low wandering, and costs continue to drop. Inaddition, foreign export trade in hebei province is not developed, only by investing ininfrastructure construction and some public welfare undertaking to drive economic growth.Therefore, single investment structure of the investment-driven model of development resultthat economic development is only a volume growth, and no qualitative growth, people’sincome level is not improving. Low income affects consumption’s diversity and sustainability,still only through a single investment structure to drive economic growth. Such a viciouscycle go against economic sustainable development.At first, summarizeding the research results of the predecessors, and summarizeding therelated basic theory of labor income and economic development, through comparing with theUnited States and China, analyzing the evolution process of Hebei labor income; Thencomparing with other provinces by labor income status analyzed in Hebei province, findingthat labor income level is low, its reason is that the direction of Hebei industrial structure islow, and the enterprises erode labor income; Then analyzing the influence of labor incomelow for economic development, and using distributed lag model and so on measurementdynamic analysis method analyze the relationship between labor income and consumptiondemand and between labor income and GDP per capita Finally based on labor income low inhebei province proposed relevant countermeasures.Analysis results show that labor income to current and lag issue of consumption demandand GDP per capita has a significantly positive influence, in order to promote economicdevelopment, it needs to raise household labor income from the following aspects: Investingmore in agriculture, adjusting agricultural structure, while accelerating the urbanizationconstruction, improve peasant labor income; Improving their qualities, create more jobs;Establishing normal wage growth mechanism, promote urban labor income stable growth;Increasing the technology investment, reducing production cost, reduce enterprise erodesalary; Improving property income, increase household income.