Research On The Influence Of Human Capital Level On Labor Income Share In China

China is committed to improving people's livelihood from the perspective of income distribution.The labor income share is the proportion of labor factor income in the initial distribution of national income,and it is an indicator of whether the factor distribution is reasonable.The low labor income share will widen the income gap between individuals,resulting in insufficient consumption capacity and hindering economic development.In today's era,the importance of human capital accumulation has become increasingly prominent.From the perspective of human capital level,this paper analyzes the impact of labor income share in China and the eastern,central and western regions,hoping to better accumulate human capital level and play its role in labor income share.This paper reviews the domestic and foreign literature,and expounds the mechanism of the effect of human capital level on labor income share.Based on this,the basic description of China's human capital level and labor income share trends from2003 to 2017,and a comparative analysis of the current situation in the eastern,central and western regions.Then,based on panel data of 30 provinces(municipalities,autonomous regions)in the past fifteen years,an empirical analysis was performed.The following conclusions are obtained through empirical analysis: Overall,the level of human capital has a significant negative impact on the share of labor income in China and the eastern,central and western regions.From the comparison of various regions,the labor contribution of human capital wages in the central and western regions lags behind and their labor contributions are more obvious,while the human capital returns in the eastern regions are the least efficient.At the same time,it was found that optimizing the capital-output ratio,transforming the industrial structure,increasing foreign direct investment,increasing the proportion of the state-owned economy,and increasing government education expenditures will improve the share of labor income.Therefore,in order to avoid the inefficiency of the return of human capital and increase the share of labor income,this article puts forward the following suggestions from various angles such as human capital: first,increase investment in education andchange people's perception;Efficiency;third,improve the labor market and improve the bargaining power of workers;fourth,optimize the industrial structure and achieve "human capital dividends";fifth,introduce foreign direct investment to improve human capital returns.