Spatial Econometric Analysis On Influencing Factors Of Employee’s Compensation

Since reform and opening up, our country creats economic growth at the sametime, the functional distribution pattern also experiences more ups and downs. Fromthe main distribution point of view, the functional distribution pattern mainlyaccounted for the change of Employee’s Compensation. An obviously example: theaverage annual economic growth rate is8.18%, while the Employee’s Compensationhas dropped from51.3%to39.7%in2000-2007Years, The society, government andacademia pay a close attention and explore on this problem. Obviously, China’seconomy is in a growth phase shift, throes of structural adjustment, to study theinfluence factors of the decline of Employee’s Compensation, which has importanttheoretical and practical significance.In this paper, on the basis of the income method of GDP data, the phase changeand regional characteristics of our Employee’s Compensation are analyzing, andcomparing with the United States of Employee’s Compensation. The study found theEmployee’s Compensation show a downward trend in China, which is significantlylower than the other countries. The provincial Employee’s Compensation present theobvious regional disparities, which Cloth present east low, the Midwest present high,the characteristic of central region present amplitude. In view of this, this paperselects the panel space data of2000-2012of31provinces, the empirical research onthe influence factors. Research is divided into two levels: one is the spatialautocorrelation analysis method, which studies spatial dependence of our regionalcountry Employee’s Compensation; The second is to use the spatial panel model andeffect of SDM model decomposition method, which analysis the various factors andspatial spillover effect to our Employee’s Compensation.The empirical results show that: from the point of overall level, economic growth,raising the level of opening up and the technological progress reduce the Employee’sCompensation in China, the human capital and government’s economic policy is notsignificant onto the Employee’s Compensation of influence. From the point of spatialdependence, Employee’s Compensation accounted for a significant spatial correlationin various provinces, which show the high(low) region of the Employee’sCompensation is adjacent region of the relatively low(high) of the Employee’sCompensation. From the point of space effect decomposition, economic growth reduces the Employee’s Compensation of the region and surrounding areas. Degree ofopening up improve the Employee’s Compensation in the region, but it reduces theEmployee’s Compensation of surrounding areas; Technological progress is notsignificant about the Employee’s Compensation of this area, but it reduces theEmployee’s Compensation of surrounding areas. Therefore, the opening up andtechnical level increased the gap of Employee’s Compensation between the provincesin China.