Structural Decomposition Of The Share Of Labor Reward In Tianjin Analysis From The Perspective Of Industrial Division Of Labor

Normally,with the economic growth,the income of ordinary people will also increase;the higher level of economic development of a country or region wiht the higher level of per capita income.Because a large part of the income of ordinary people comes from labor compensation,and labor compensation is part of GDP.Therefore,the share of labor compensation in GDP is closely related to the income of ordinary people.However,statistics show that from 2011 to 2015,Tianjin ’s per capita GDP was higher than that of Beijing,but per capita disposable income was significantly lower than that of Beijing.So why? In recent years,the economic growth rate of Tianjin has slowed down significantly,and the economic vitality is not as good as before.Is it related to the low labor compensation share? How can we raise the per capita income level of Tianjin people,so as to increase the attractiveness of talents and the vitality of Tianjin’s economy? This article intends to use this as an entry point to carry out research on the influencing factors of Tianjin’s labor remuneration share,and then propose corresponding policy recommendations.In view of the labor compensation share of the whole society in a certain period,it is a weighted average of the labor compensation of various industries in that period,and the weight is the industrial structure;and it includes the horizontal and the vertical division of labor.Therefore,this article draws on the ideas of Hu Qiuyang(2016)and extends Solow(1958)’s two-factor decomposition model of the overall labor compensation share change to a three-factor model of intra-industry effect,final demand structure effect,and value chain structure effect.Among them,the final demand structure effect and the value chain structure effect respectively reflect the changes in the horizontal and vertical division of labor structure’s impact on the overall share of labor reward.The sum of the two effect is exactly the industrial structure effect in the Solow(1958)two-factor decomposition model.Then,this model was used to calculate and analyze the rate of each influencing factor to the changes in Tianjin’s labor compensation share in the three stages of 2002-2007,2007-2012,and 2012-2015,and compare the results with Beijing,Hebei province and national average.The analysis based on the three industry classifications shows that:(1)The intra-industry effect have always played a major role in the change of Tianjin’s labor compensation share.During the early stage(2002-2007),it showed a decrease in the overall labor compensation share in Tianjin.During the middle and late stage(2007-2012,2012-2015),it showed to enhance the overall share of labor reward in Tianjin.The industrial structure effect have undergone structural changes in the early,middle,and late stages;(2)After the industrial structure effect is decomposed into the value chain structure effect and the final demand structure effect,in 2002 to 2012,the final demand structure effect has a greater contribution.And in late stage,the contribution of the chain structure effect exceeds the final demand structure effect,and promote the increase of the overall share of labor reward.The article next divides the three industries into 13 industrial sectors,and analyzes which industrial sectors play a major role in the alteration of the labor reward share of the Tianjin.And the results indicates:(1)The industrial sectors that have a greater contribution to the intra-industry effect are mining,consumer services,and productive services;(2)During the early and middle stage,final demand structure effect make a major contribution in the industrial structure effects,and performance in order to reduce the overall share of labor reward in industries such as agriculture,forestry,animal husbandry and fishery products and services,productive and consumer services in the early stage.In the medium term it increased the overall share of labor reward in productive and consumer services.In the later period,the value chain structure effect began to play a major role,increasing the overall share of labor compensation in the chemical product processing industry,the production and supply of electricity,gas and water,and the productive and consumer service industries,which promoted the increase in the overall share of labor reward.The article also makes a horizontal comparison of the results of the Tianjin’s share of labor reward with Beijing and Hebei and the national average.The results indicates that the industrial labor compensation share of Tianjin’s high-tech manufacturing industry is relatively low,and needs to be further improved.Finally,based on the results,from the perspective of division of labor among different industries,this paper provides some reasonable policy suggestions for Tianjin to rationally optimize the industrial division of labor,rationalize the relationship of factor income distribution,and improve the attractiveness of high-quality talents.