The Research On The Impact Of Economic Globalization And Bargaining Power Of Labor On Labor Income Share

The issue of inequality has attracted much attention in recent years.The report of World Bank,"Change of 2018 national wealth",pointed out that "From 1995 to 2014,Global wealth has increased by 66%,including production capital,human capital and so on,however the global inequality problem is still serious."So what's the root of social inequality?Thomas Piketty told us the root of global inequality in twenty-first century was the distribution of the factors with strong capital and weak labor.Since 1980s,economic globalization has been in full swing while the labor income share has been losing ground.Are the two coincidences?Or there's another mystery?This paper makes an empirical analysis of the cross-panel data of 78 countries over the past 2000?2014 years,and reaches the following conclusions:(1)Economic globalization will deteriorate the share of labor income and the combined effect of economic globalization and bargaining power to labor income share is negative.(2)The influence of bargaining power on labor income share varies from country to country,in developed countries,it's negative while in developing countries it's positive.(3)The development of industrial manufacturing will bring about the improvement of the level of economic development,which is conducive to the improvement of the share of labor income in a country.However,due to the high level of industrialization in developed countries,the development of industry will bring about the increase of capital factor income share and weaken labor share.(4)The higher the level of economic development,the higher the share of labor income,and the technological innovation often accompanied by a decline in the share of labor income.(5)The higher the degree of capital deepening in developing countries,the lower the share of labor income;the higher the degree of capital deepening in the developed countries,the higher the share of labor income.At the end of this study,this paper gives specific suggestions from the point of view of the government.