Analysis On The Changing Trend And Influencing Factors Of China's Labor Share Since 1990s

Since the reform and opening up, China's economic construction has made great achievements,the total economic output ranks second in the world,people's living standards continue to improve. However,since 1990s,China's labor share has declined significantly, and long-term low. This phenomenon is not only a challenge to Kaldor facts,but also inconsistent with the comparative advantage of China's abundant labor resources,more important is the long-term low labor share will exacerbate China's gap between the rich and the poor, is not conducive to social stability and economic development.The majority of scholars have made a lot of research, mainly concentrated in two aspects: one is to study the measurement and the status quo of China's labor share; the two is to study the influencing factors of China's labor share. These two aspects of research have emerged a lot of valuable results.However, in the new economic situation,the research on the share of China's labor share remains of great value.For example: we through data analysis found that China's labor share is not always in a downward trend,in fact,from 2011 onwards,China's labor share rising continuously,We believe that changes in this trend deserve further study.In addition, in the aspect of influencing factors of labor share, there are many researches from the empirical point of view, and the theoretical analysis is relatively simple. We believe that the full and in-depth theoretical analysis is necessary, and to clarify the influence mechanism of various factors on China's labor share will provide better support for empirical research.From the above two points, this paper will use theoretical analysis and empirical analysis to research. In the current situation and trends of China's labor share, we confirmed this rising trend by data; in the influencing factors of China's labor share, we use factor analysis method, emphatically analyzes the influence mechanism of the transformation of industrial structure, ownership structure changes, the level of human capital,rural the transfer of the surplus labor force of four factors on China's labor share.Then in the empirical part, we use 1996-2014 time series data to test results.The results show that: the transformation of industrial structure in the short term will bring about a decline in the share of labor share, but in the long term, with the increase in employment of the third industry, its impact on China's labor share is positive;in the reform of state-owned enterprises, private and foreign capital into the ownership structure changes will bring down the labor share; The improvement of the level of human capital plays a great role in promoting the growth of China's labor share;the transfer of rural surplus labor force will be through the influence of the labor supply and labor productivity makes the decline of labor share. The above conclusions are supported by the empirical results.On the policy recommendations, we believe that efforts to develop the third industry,raise the bargaining power of workers, strengthen vocational education and remove barriers to urbanization will be conducive to the growth of China's labor share.