Gap Between Research And Labor's Share Of Income Distribution

China’s economic system has been transforming from the Planned Economy to the Market Economy system Since1978,which not only liberates the productivity, but also greatly promotes the development and progress of the society. At the same time, the income distribution system in China has also conducted a number of major reforms, and gradually established a new income distribution system of distribution according to work and a variety of modes of distribution coexisted. In recent years, how to narrow the income gap between residents is a major issue in China,and Chinese government has focused on the national income redistribution and taken many other actions together. However, the trend of widening income gap has not been effectively controlled, but also intensified.In my opinion,in order to narrow the gap between rich and poor,increasing the labor income share is an effective solution to the issue above, This paper,from the perspective of functional income distribution, mainly discusses how to improve the labor income share and the relationship between share of labor income and the gap of income distribution, hoping to make a beneficial research on the issue.This paper divides our country into three parts:the eastern region,the middle region and the western region,and collects a panal data from1999～2009in different regions of the labor income share changes.We plan to find out the influence factors of labor income share by a mathematical model,and the relationship between the share of labor income and the gap of income distribution through the econometrics. After introducing labor-saving technical progress and capital-saving technical progress to Solo Model, we find that the labor income share is manily depended on four factors:the growth rate of national income,education expenditure,science and technology investment and fixed capital investment. The paper also shows labor income share has a positive correlation with the growth rate of education expenditure and science and technology investment in China.But in the east of China,the growth rate of capital investment and education expenditure will not raise the labor income share,and it is opposite in middle and west of ChinaThe empirical analysis shows that education expenditure growth rate and the Gene coefficient exhibit a negative correlation, increasing education expenditure growth rate is conducive to reducing the Gene coefficient. Too fast increasing of fixed capital investment and the high economic growth rate will make the Gene coefficient higher. Science and technology fund growth rate and the rate of labor force growth changes doesn’t obviously affect the Gene coefficient.