Research Of The Impact Of Capacity Utilization On The Labor Share

With the reform and opening up as well as the reform of the economic system,all kinds of elements have been fully utilized.Our country has made great progress in the economic field.Residents' income and industrial output have been greatly improved.But there are many problems,such as the decrease of labor income,overcapacity,environmental pollution and so on which are behind the rapid growth.Among them,the proportion of labor income reflects the distribution of labor elements in the initial distribution.With the development of China's economy,its change also reflects the growth of laborers' gains in economic growth.As the labor income ratio has changed greatly in recent years,the key to the stability of the people's livelihood has also been concerned by the community.However,the impact of capacity utilization on labor income has not been mentioned in the existing research.However,under the guidance of the macro policy of capacity development,what is the effect and mechanism of capacity utilization on labor income? This paper will sort out the relevant literature on the utilization of productivity and the ratio of labor income,and make an empirical analysis with the data of manufacturing industry.In this paper,the data of 28 industries in China's manufacturing industry from 1999 to 2015 are used to measure the utilization ratio of productivity and the ratio of labor income.The capacity utilization rate of industries is measured,and the supply side and demand side methods are used to find that the capacity utilization of all factor intensive industries is decreasing.The overcapacity of capital intensive industries is more serious.In the use of the input-output method,cash flow method and three kinds of methods of income accounting GDP to 1999-2015 years of China's labor income accounted for the measure than the situation,found that the labor income share with economic development showed the characteristics of U type;and each factor intensive industries are U features,including capital intensive industries the lowest proportion of labor income.In the empirical analysis,it is found that the increase of capacity utilization can promote the increase of labor income in labor intensive industries,and decrease the proportion of labor income in capital,technology intensive industries and the whole manufacturing industry.But this is not meant that improving the capacity utilization rate will reduce the labor income accounted.Because in the further analysis,it is found that as the labor income lag behind,through the adjustment of labor income in the long run,improving capacity utilization will lead to the improvement of labor income share.According to the results and conclusions of this paper,we put forward the policy suggestions on improving the productivity utilization ratio and different industries and periods.