A Study On The Provincial Differences Of Chinese Labor Income Share And Its Influencing Factors

Over the past 40 years of reform and opening up,China has made a series of achievements.However,there are still a series of problems.Chinese economic growth has slowed down and is in a transition stage.The economic driving method must gradually shift from investment and export to consumption.Therefore,attention is paid to income distribution.In particular,changes in the distribution of functional income have an important effect on the transition to consumption-driven transformation.In addition,according to the results of large-scale income distribution,Chinese income gap is relatively large,and narrowing the gap from the source of the initial distribution is also conducive to narrowing the large-scale income distribution gap.Therefore,functional income distribution needs to be studied.Considering the problem of excessive regional income disparity in China,starting from the inter-provincial level to study the differences in regional labor income shares is conducive to solving the problem of income disparity from the source of primary distribution.Take the labor income share of 29 provinces(municipalities,autonomous regions)of Chinese from1993 to 2017 as the research object to compare the differences between different provinces and find the influencing factors of labor income share from the theoretical and empirical levels.By establishing a dynamic panel model and using differential GMM to analyze the influencing factors,it is found that the weakening of the dual economic structure is conducive to the increase of labor income share;the proportion of the secondary industry in the industrial structure has a negative effect on the labor income share.With the increasing of the capital-output ratio,labor income share is increasing.It is indicated that the elasticity of substitution of capital labor is less than 1.In the open economy,the impact of export trade on labor income share is negative and the impact of foreign investment is not significant.In addition,the impact of education investment has not played its due role.Aiming at the specific influencing factors of labor income share and inter-provincial differences,policy suggestions are proposed to promote the rationalization and advanced evolution of the industrial structure in each province,increase human capital investment in each province,improve market mechanisms,and improve technological levels.