The Empirical Analysis Of Labor Share And Economic Growth Of China

We analyses the relationship between economic fluctuations and labor share. Then we verify the research with panel data through1995to2003of21provinces in China by the means of three stage least squares in simultaneous equation model. The results shows that there is a "inverted U" shaped relationship between Economic fluctuations and labor share. After2004, the relationship turns to counter-cyclical. And Eastern region significantly stronger than the Midwest, it is considered to be associated with the lack of union independence. Finally, we raise recommendations to improve the Labor Share.