Empirical Study On The Decline Of Labor Income Share Of China

Since the reform and opening-up,China has achieved a rapid development.The average annual growth rate of GDP is about 9.7%.However,the share of labor income in GDP has been continuing to drop since the 1990's,and have reached the rock bottom about 39.74% in 2007.What is the reason of continuous declination of labor income share? At the same time,population structure also has changed drastically in age structure?urban and rural structure?educational structure and so on.As the new trend of population structure and the continuous declination of labor income share occurred at the same time,and there is a close relationship between population and labor,resulting in this paper analyze the reasons for the decline of labor income share from the perspective of population structure transformation.Based on the literature review of the influence factor of the declination of labor income share and the Clark distribution theory,this paper has theoretically analyzed the mechanism that how the population age structure?urban and rural structure and educational structure influence labor income share.After the description of the trend of the population age structure?urban and rural structure and educational structure,this paper establish a provincial panel data modal to empirically analyze how the population age structure?urban and rural structure and educational structure influence labor income share.The main research works develop on the way as followed.First,the population age structure?urban and rural structure and educational structure influence the labor income share mainly through affecting labor market supply and demand situation.Second,since 1990`s,China's labor income share continued to decline.The labor income share of primary industry is greater than secondary industry and tertiary industry,and the labor income share of tertiary industry is greater than secondary industry.At the same time,population structure also has changed drastically in age structure?urban and rural structure?educational structure and so on:Child dependency ratio continues to decline and elderly dependency ratio continues to increase;The proportion of urban residents continues to increase,and the urban population has exceeded rural population;The proportion of highly educated population continues to increase,the quality of population have been advanced.Third,Child dependency ratio has significant negative effects on labor income share,while elderly dependency ratio has significant positive effects on labor income share.The improvement of population quality has positive effects on labor income share.Urbanization has negative effects on labor income share but not significant.Fourth,Economic growth and employment pressure measured by the unemployment rate have a significant negative effect on labor income share.The upgrading of industrial structure measured by the proportion of the tertiary industry accounting for GDP and foreign direct investment have a positive effect on labor income share.The Effect of technological progress measured by Capital output ratio and fiscal expenditure on labor income share is not significant.