Study On The Reason And Measures Of China’s Labor Income Share Continued To Decline

The relationship between the distribution of national income and economic growth is the eternal subject in economics. China’s national economy continued to grow rapidly in current stages, according to the labor and capital contribution to economic growth, China’s labor income share gradually decreases in the proportion of national income distribution. Labor income ratio is far below the labor contribution to national economic growth.After clarifying the reasons for studying on the labor share of the distribution of national income and defining the object of study, the thesis summarizes the research achievements of Chinese and foreign scholars on the impact of factors on the labor share, and establishes the labor factor participating in the distribution of national income. According to contribution in the market mechanism, it constitutes the theoretical basis of the labor share in the initial distribution of national income over the past decade.This thesis that accounts economic growth rate of contribution of capital and labor factors of production in the national income uses a quantitative analysis in the last decade of year. In the pattern of initial distribution of national income seriously tilts to capital, the share of labor income decreases gradually. According to the labor and capital contribution to economic growth, the initial structure of national income distribution seriously tilts to the capital factor.Labor income ratio is far lower than the labor contribution ratio. Adopting the national income distribution theory, we commenced the vertical and horizontal comparison with the historical experiences of other countries by using general conclusions and experiences from the major developed capitalist countries. It regards the factor distribution of the initial distribution structure on the major developed countries as the general experience and reference that identifies the imbalance between Chinese labor and capital in the process of economic development, which recognize China labor share change trends, a certain economic stage, the level of development. In addition, we compared it with labor share optimal value, contribution value in the stage of economic development, which scientifically judge the deviation degree of the income share between labor and capital in the national income. These studies, we can scientifically provide an empirical basis for distinguishing of the corresponding share of labor and capital in the distribution of China’s national income as well as and base on these theoretical bases we scientifically improving labor income.This thesis also makes analysis the reasons of the share of labor income to decrease; and then appropriate policy recommendations are based these reasons. In order to increase the share of labor income, we need to give full play to the basic regulatory role of the market mechanism in the initial distribution; must correctly understand and further perfect the connotation of the distribution of elements contribution under the conditions of market mechanisms; improve the normal wage growth mechanism, let the government plays its macro-control functions, reduces and control the share of its revenues, adjust the relative share of labor and capital in national income.; continues to promote workers their own quality to increase the added value of labor factors, and Only can all of the above measures meet the requirements of the reasonable interests and equality of the workers.