An Research On The Movement And The Tendency Of The Proportion Labor Share In Hubei In Recent Years

China’s economy has experienced more than 30 years of rapid development.However,the rapid development leads to some problems and contradictions.One of them is the problem of income distribution which has became a critical issue in the whole society.The inconsequence of initial distribution makes the laborers not be able to fully enjoy the bonus of the development and makes influences in the consumption power of the people,thus making the development of China’s economy encounter obstacles. The percentage of China’s Labor income accounted for GDP showed a downward trend year by year.In 2007,it hit the lowest 39.74%.The figure of Hubei began to decline from the 1996,and in 2007 fell to 41.13%,which created the lowest record in the past twenty years.Though after 2007 it goes up again,it is still slightly lower than the average level of the country,far below the 60%-80%level of western developed countries.The unreasonable distribution of labor income is a hidden danger,which should not be ignored, for the long-term development of the economy in Hubei.It could affect the consumption of the people in our province.The increase in the proportion of labor income will make the initial distribution of our province more reasonable,which has important significance to solve the problems of development and to achieve the 13th Five-year Plan.The article is concentrated in discussing the change tendency and its influencial factors of the labor compensation proportion in Hubei during the period of 1995-2014.On the basis of the relevant factors of distribution theory and related issues abroad and at home,the paper conducts a general theoretical research on the factors influencing the proportion of labor remuneration in Hubei and its mechanism.Six factors that may have a significant impact on the proportion of labor remuneration in Hubei province were selected.The factors are capital investment,the improvement of technology,industrial structure,dual economic structure,the degree of complete market deviation and free trade(FDI and export trade).We conduct the model of empirical analysis with the factors.On the basis of the model,we carry out an empirical study combined with the relevant macro data of Hubei from 1995 to 2014.After getting the empirical results, combined with the specific situation in Hubei,we make an analysis of the results and propose some reasonable policy recommendations.From the study,it can be found that capital investment,two-part economic structure,the degree of deviation from the market and the export trade have significant impacts on the proportion of labor share,while the technological progress,industrial structure and FDI make no differences to the figure.And in order to improve the proportion in Hubei,it should be adjusted from three aspects of government,enterprise and individuals.