The Study On The Labor Income Share Of China’s Industry And Its Influencing Factors

In the early stage of reform and opening up,the distribution of factor income in China’s industrial sector showed a trend of continuous inclination to workers.However,since the middle and late 1990 s,industrial profits have increased sharply and accompanied by a slow rise in wages.The imbalance of profit distribution in the industrial industry and the rapid inclination of income distribution to capital have caused some people to worry about the status of labor in the income distribution of the industry.In order to analyze the trend and law of factor income distribution in China,this paper,based on the panel data of China’s industrial sector from 2005 to 2014,investigates the share of labor income in China’s industry.First of all,using the method of descriptive statistics and comparative analysis to study the changing trend of labor income ratio,it is found that the labor income share of industrial industry has obvious trend characteristics,in 2005-2014,The proportion of labor income in the industry shows a U-type trend of first decreasing and then rising.Secondly,based on SK line theory,an empirical model is constructed to find that,in the whole industry,the labor income share decreases first and then increases with the increase of technology level.That is,the influence of technological progress on the proportion of labor income is of U-type nonlinear characteristics;capital deepening,administrative monopoly,industry scale and export trade can promote the increase of labor income share.Foreign direct investment has restrained the increase of labor income share.The research on sub-sample of industry that distinguishes different periods of time finds that the promotion effect of technological progress on labor income share of industry is increasing compared with that before 2009.The promotion effect of administrative monopoly and industry scale is weakening.The research on the sub-sample of different technology level shows that the promotion effect of administrative monopoly and industry scale on labor income share of high technologyindustry is greater than that of low technology industry.Foreign direct investment(FDI)can significantly increase the labor income share of high technology industries,but restrain the increase of labor income share of low technology industries.Based on the above analysis,in order to prevent the income gap between labor and capital from widening further and to build a harmonious society,this paper gives some suggestions to improve the position of labor income distribution in the industry,including promoting technological progress,attracting investment by differentiation,optimizing the structure of foreign exports,and perfecting the system of safeguarding workers’ rights and interests.