Measurement Research And Reasons For Changes On Labor Income Share In China

From the problems should be solved in the labor income share estimates of china, thisarticle found that different division of self-employment income led to differentmeasurement results. In this paper, using the date of china’s fund flow statementsfrom1992to2011, according to the improvement of self-employment income tomeasure out labor income share in China, and using the method of clamp force provedthe rationality of the measurement results and the measurement method is feasible.This study found that labor income share in china is steady at between50%and53%from1992to2003; the labor income share in china rapidly falling after2003anddecline to45%in2011which is the lowest level. Through factor analysis andvolatility decomposition structure of fund flow statement and found that the laborincome share decline after2003in part of statistical caliber changes; and the otherpart of the reason is that enterprises and residents department internal labor incomedecline, this shows that our country exists the tendency of "strong capital and weaklabor".People pay more attention to internal labor or the income gap between regions for along time, and ignore the elements especially the income gap between capital andlabor. In recent years, the downward trend in labor income share in China quicklyshould get the attention of the government and scholars. Only find out the changemechanism of labor income share, can the government formulate a reasonable policyof income distribution.