Analysis On The Influence Of Surplus Labor Supply Of The Proportion Of Labor Remuneration Under The Background Of Industrial Transformation

The speed of Chinese economic development is the leading position in the world since the reform and opening up. The living standard of people has been greatly improved. Although the pace of economic development attracts people’s attention, Chinese labor compensation share of GDP has fallen from 53.42% in 1990 to 45.59% in 2012. The higher the level of economic development of the area, the lower proportion of labor remuneration. In the process of economic development, industrial structure adjustment has shown in agriculture, industries, and ultimately to the service industry. In this process, labor income share depends on the income share of different industry and the different internal labor income share. With the continuous development of secondary and tertiary industries, the productivity difference between the traditional and the modern industrial production sector is growing,which attracts a large number of agricultural surplus labor transfer to a modern industrial sector,offering adequate labor force for the secondary and tertiary industries.Is the inelastic labor supply the underlying reason that caused the declining of labor income share before the surplus rural labor force is absorbed?This article is based on this background, to explore the relationship between surplus labor and the proportion of Chinese total labor compensation accounted for regional differences in labor compensation and changes in the industry background generated by the agricultural sector. This article selects the data from 1995 to 2012, using the proportion of labor remuneration decision model and dividing the country and regions,to test the industry under the background of changing labor force supply in accounting for the effects of labor remuneration. Draw the following conclusions: first, industrialization and labor force supply is in the national scope significantly reduced the proportion of labor remuneration, which is consistent with our theoretical derivation. Second, the supply of surplus labor has a significant impact on the labor remuneration accounted for in the eastern region. In this paper, mainly due to the technological innovation the eastern region with, so that the staff under the same working capacity significantly the less staff is needed. Its individual labor creates GDP is far higher than the central and western regions, but at the same time, the labor wage growth rate is less than the growth rate of GDP. It also effectively explains the area difference of Chinese labor compensation share ratio. In view of the above analysis, finally, the paper puts forward the optimization policy recommendations ofthe primary distribution pattern from the production elements and reasonable pricing, optimization of industrial structure and layout adjustment etc in our country.