Research And Empirical Test On The Influence Mechanism Of Service Economy On Income Distribution In OECD Countries

There are two major themes in economic research,one is economic growth,the other is wealth distribution.The issue of wealth distribution is not only a social welfare issue,but also a study of its development law from the perspective of economic theory itself.Under the current background of pursuing economic balance and high-quality development,this issue has a strong practical significance.More than 60 years ago,Kuznets put forward the hypothesis of "inverted U" trend that income inequality first rises and then falls with economic growth,which makes development economics take a big step forward.Since then,economists have launched intense discussion and extensive research around Kuznets inverted U curve.However,by sorting out the change trend of the highest 1% of the population's income share in the past half century in 36 OECD member countries,I find that the income distribution of 31-member countries shows the trend of "positive U","n" and inclined upward,which is obviously not in line with the traditional Kuznets inverted U-type theory.At the same time,we have noticed the rapid development of service economy in most OECD countries,accounting for more than 70% of the total economy.The change of industrial structure is bound to have an impact on the mechanism of income distribution.This paper will explore the reasons for the increase of income gap from the perspective of service economy.This paper finds that there is a positive correlation between service economy and income gap in OECD countries,which shows that our research perspective is correct.Then we study in detail the unique revenue determining mechanism of service economy-"Baumol cost disease effect" and the basic development law of modern service industry.Then we analyze the changing trend of the internal structure and employment structure of the service industry in the United States and the United Kingdom,as well as the differences of labor productivity among the service industry,manufacturing industry and service industry in the United States,and deduce that the differences of labor productivity among the various industries in the service industry are the internal mechanism and key factors that affect the income distribution of the service economy.Based on the summary of the above laws,we have established the overall analysis framework of "internal structure differentiation of service industry labor productivity difference of internal industry employment structure difference overall income difference",and systematically elaborated the influence mechanism of service economy on income distribution from two aspects,namely,labor productivity difference of internal industry of service industry,cumulative effect of human capital and difference of educational capital.In the empirical part,I selected 12 major OECD countries such as the United States,Germany and the United Kingdom as the research objects.The first 10% of the population's income share is selected as the dependent variable to represent the income level.The independent variable is selected as the service economy level,economic growth index,trade openness,urbanization level,industrial sector labor productivity,general service labor productivity,high-end service labor production Rate 7 indicators,the time span of all the above indicators are 1970-2010.After correlation test and multicollinearity test,the optimal ridge regression model is selected to regress the above indicators.The results show that except the urbanization level indicators,the other indicators are obviously significant,and pass the measurement test.According to the theoretical analysis and measurement results of this paper,we can conclude the following six conclusions:(1)the traditional Kuznets inverted U-shaped curve is only established in the era of industrialization,and in the era of service economy,the original income distribution mechanism of manufacturing industry is not applicable to the service industry.(2)With the development of service economy,the change of income distribution shows a "positive U-shaped" trend of first decreasing and then rising.(3)The development law of modern service industry is gradually evolving from the initial stage to the advanced stage.The high-end service industry and the general service industry complement each other,promote each other and develop together.(4)In terms of the internal output structure of the service industry,the high-end service industry has gradually become the main body of the service industry,but in terms of the proportion of employment,the high-end service industry has limited ability to absorb employment,and the general service industry is still the main position of employment in the service industry.(5)The differentiation and huge difference of labor productivity between high-end service industry and general service industry make the income gap between the two industries significant and increasing.(6)The invisible employment effect of high-end service industry makes it have demand for general service industry.The huge difference of labor productivity between the two types of industries results in the increase of the income gap between the practitioners,and then the expansion of the social income gap.The high technical barriers of high-end service industry make its employees have more advantages in human capital accumulation and education and training,improve the access threshold of high-end service industry,and further expand the social income gap.Finally,according to the influence mechanism of service economy on income distribution and the background of China's current pursuit of balanced and high-quality development,we put forward some reasonable suggestions on the development of service economy and income distribution policies.