Study On The Trend Of Labor Share In Henan Province

The labor remuneration of primary distribution also known as the labor share has always been a hot topic among research scholars who focus on the changing trend of labor share, the calculation method of labor share and how to improve the labor share. Most scholars consider that the trend of China’s labor share conclusion is decreasing, but there are a small number of scholars believe that the country’s labor share maintained a steady trend even on the rise. However, less domestic scholars has studied the trend of labor share in Henan Province. And seeing from the existing view, most scholars do not study the self-employed. They do not remove the calculation of land in Henan caliber respect and remuneration capital gains, and they conclude that the labor share of Henan is declining. Only a few scholars believe that the trend of labor share in Henan showing smooth fluctuations, and maintained at a lower level. The labor remuneration refers that the workers pay physical or mental labor and then get relational rewards. Many scholars use the data of the Statistical Yearbook directly, but they did not consider the special groups- self-employed person’s remuneration, therefore, they may overestimated the labor share in the calculation, and the resulting data can not be a true reflection of the proportion of remuneration fluctuation. Low proportion of remuneration in primary distribution share is not only a big problem which affects the steady and rapid economic development of the province, but also related to the vital interests of the masses, therefore, re-adjusting the data of remuneration and researching the real trend of labor compensation is a significant topic.At the same time, the low proportion of labor compensation in the initial distribution is a current problem existing in the field of income distribution, and improving labor remuneration in primary distribution is the focus of the current income distribution reform. The party’s congress in the report states clearly that we must increase the income of urban and rural residents’ income in the reform of income distribution. The primary distribution and redistribution must handle the relationship between efficiency and equity properly, and the redistribution pay more attention to fairness. We must increase the income in the national income gradually. On the other way, the eighteenth report also pointed out that we must deepen reform of the income distribution system, and strive to achieve income growth and economic development synchronization. The initial distribution is the first part of national income distribution, and it solves the problem of money between the distribution of benefits and human capital owners. It includes not only the big amount but also the wide-ranging. Therefore, if the initial distribution has the problem of unfair distribution, it will lead to chaotic distribution, and the income gap will further increase and the government will have the difficult to adjust it.In this paper, we study the proportion of labor remuneration in primary distribution, and we use a new method to adjust the labor remuneration in primary distribution of Henan Province, that is to say, we adjust the labor remuneration of self-employed at first, and use the new data to analyze the trend of labor remuneration in primary distribution of Henan Province.Meanwhile, the paper also analyzes the reasons presented in Henan labor compensation accounted for such fluctuation, and the factors which affect the labor compensation share of fluctuations in Henan Province. Finally, the paper puts forward some suggestions to improve low proportion of remuneration in Henan Province.