The Study On The Impacts Of Labor's Transfer To Labor's Share

Nowadays, China's economy continues to rise, while the labor's share is going through adverse changes. The decrease of labor's share not only broadens the individual income gap, but also leads to the depressed consumption and investment dependence in recent years in China, what's worse, it harms the justice in our society, which hinders the masses of people enjoy the fruit of economic growth. So, in the new normal, how to improve the domestic demand, break the investment-driven growth model, promoting the labor's share is critical. In this program, we should not ignore our country's dual economic structure. Labor flow's influence on the labor's share is complicated, at different times it likely to show different results. The study on it has important theoretical significance and practical significance.This paper firstly tries to explain the mechanism on the impact of labor's flow on labor's share. Labor's flow will affect the labor's share from the following four aspects:firstly, labor's flow pulls down the whole labor's share directly; secondly, it declines the labor's share by influencing the allocation pattern of the non-farming sector; thirdly, it slows down the declining of labor's share by influencing the labor remuneration in agriculture sector; fourthly, it also slows down the declining of labor's share through the linkage effect of the two departments. Next, I do the statistical description aimed at our country's labor market, estimate our country's labor's share from 1992 to 2013 using "Flow of Funds Accounts", in the meantime, estimate the labor's share of each province from 2000 to 2014 by the income approach of GDP. Moreover, I do an empirical analysis in the Fixed Effects Model by using the panel data of provinces from 2004 to 2012, then make a robustness test.In the long run, the labor's flow from agriculture sector to non-farming sector reduces the labor's share, but the regression result for 2009-2012 data shows that this impact tends to be weakened. Finally, put forward relevant policy recommendations combined with the dual economic structure in our country, ease the unreasonable elements'income distribution.