The Impact Of Industrial Structure Change On Labor Share In Jilin Province

The rapid development of China’s economic has created a miracle of economichistory and won the world’s attention since the reform and opening up. China hasbecome the world’s second largest economy in2010, the people’s living standards havebeen greatly improved. However, some problems has emerged in the developme ntprocess of our economy, such as irrational economic structure and income distributio ngap has been gradually expanded. Especially in recent years, labor share in Chinacontinued to decline. Laborers remuneration is an important part of the residents’income distribution, if labor share is too low, the income gap will become more andmore serious. Our government has introduced policies repeatedly to stress the need toimprove the proportion of laborers remuneration in primary distribution of income. JilinProvince is also facing the grim situation of decline in labor share, and it’s more seriouswhen compared to the whole country. The labor share of Jilin Province was higher thanthe national level in2007, but then it’s began to lower than the national level, showeda gradual downward trend, and the rate of decline is greater than the national.Scholars have done a lot of research on the influence factors of labor share. Somestudies have shown that changes in industrial structure is an important factor on thechanges of labor share. The industrial structure of Jilin Province was a typical "two onethree" mode in the early stage of reform and opening up. Since then it has madesignificant progress into "two three one" mode. Jilin Province is currently at a criticalstage of the adjustment of industrial structure. How the change of industrial structurewill have impact on the labor share of Jilin Province is an important issue which cannotbe ignored. Then, the paper analyzed its influence on the labor share from theperspective of industrial structure.The paper first gave a brief description of the research background and researchsignificance, then generalized relevant theories of industrial structure and labor shareand summarized the relevant literature on labor share at home and abroad. The thirdchapter in the paper was about the analysis of the current situation. We conducted acomprehensive analysis from two aspects of industry structure and industryemployment structure on the industrial structure of Jilin Province, and had a comparative analysis with the national average. The country has changed the statistica lcaliber on labor remuneration in2004, making2004before and after the laborersremuneration data not comparable. So the paper adjusted the laborers remuneration datafor2005. Based on the adjusted data, we recalculated and analyzed the labor share inJilin Province. The fourth chapter of the paper carried on the descriptive analysis on thetrend of the industry of labor income share. And based on the VAR model, we testedthe correlation between changes in the industry and the labor share. We analyzed theimpact of changes in industrial structure and the intra industry labor share on total laborshare empirically by decomposing the labor share.In the last chapter, the conclusions were summarized: the industrial structure andthe intra industry labor share had different influence on the total labor share in differe ntstages. From1978to2012, the interaction effect of industrial structure and industria linternal effect reduced the labor share in Jilin Province, but the change of industria lstructure played a greater role. In recent years, labor share decline in Jilin Province wasmainly due to the industrial sector and the tertiary industry internal labor share havebeen in decline. We also found that the proportion of tertiary industry in Jilin Provincebegan to gradually rise, which will help to improve the labor share. Finally the paperput forward suggestions to improve the labor share in Jilin Province from theperspective of industrial structure.